Nigeria signs $1.2bn deal with China to revive Akwa Ibom gas plant, boosting aluminium production

Nigeria has signed a $1.2bn agreement with China National Chemical Engineering Corporation (CNCEC) to reactivate a dormant gas processing plant in Akwa Ibom, aiming to significantly expand the country’s aluminium production capacity.

The project, announced by Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo, will see the revival of operations at the Aluminium Smelter Company of Nigeria (ALSCON), which has been halted for years due to legal and financial challenges.

Under this initiative, CNCEC and BFI Group—the main investor in ALSCON—plan to restore a 135-mn-standard-cubic-feet-per-day gas processing facility at the site, enabling the production of up to 300,000 tonnes of aluminium annually. Ekpo highlighted the project as a critical advancement for Nigeria’s industrial sector and aligned with President Bola Tinubu’s economic development agenda.

“This ‘epoch-making’ partnership reflects the steadfast commitment of President Bola Tinubu to foster investments in natural gas utilisation, supporting Nigeria’s industrialisation, economic growth, and development,” Ekpo said.  “I commend the collaborative synergy between BFI Group and CNCEC International, as well as the fruitful relationship between the governments of Nigeria and China that is driving this ambitious vision forward.”

Beyond aluminium production, the revived plant is expected to generate up to 540 megawatts of electricity, enhancing Nigeria's energy supply, which is essential for the country’s industrial growth. With further investment to upgrade equipment and ensure stable power, ALSCON’s capacity could eventually reach one million tonnes annually.