In a significant step toward boosting its industrial capacity, Nigeria has signed a $1.2 billion agreement with China National Chemical Engineering Corporation (CNCEC) to upgrade a major gas processing plant. This project aims to revitalize the Aluminum Smelter Company of Nigeria (ALSCON) in Ikot Abasi, a critical facility in the country’s industrial infrastructure.
The agreement, signed on November 13, 2024, marks a milestone in Nigeria’s efforts to harness its abundant natural gas reserves. Nigeria has the largest proven natural gas reserves in Africa, yet its gas infrastructure has long lagged behind, limiting its economic potential. The ALSCON revamp is expected to address these gaps, ensuring a steady gas supply to support aluminum production and other industrial processes.
The Aluminum Smelter Company of Nigeria was initially established in the 1990s but has faced prolonged operational challenges due to inadequate energy supply and management issues. With this new deal, the Nigerian government aims to restore the plant’s full operational capacity, boosting aluminum production for both domestic consumption and export.
Minister of State for Petroleum Resources, Ekperikpe Ekpo, emphasized the project’s significance during the signing ceremony in Abuja. “This partnership underscores our commitment to leveraging strategic collaborations to unlock Nigeria’s industrial potential. It’s a crucial step toward achieving energy security and industrial growth,” he stated.
China’s CNCEC, a state-owned enterprise with extensive experience in engineering and petrochemical projects, will lead the rehabilitation efforts. The company’s involvement reflects China’s growing interest in Africa’s natural resources and infrastructure development. Over the years, China has emerged as a key partner for many African nations seeking to modernize their economies.
Experts predict that once operational, the ALSCON plant will transform Nigeria into a leading aluminum producer in Africa, fostering job creation and economic growth. It is also expected to contribute significantly to the country’s foreign exchange earnings by positioning aluminum as a major export commodity.
The project aligns with Nigeria’s broader strategy to diversify its economy away from crude oil dependency. By tapping into its gas reserves for industrial use, the country aims to create a sustainable pathway for economic development.
This deal comes as global demand for aluminum continues to rise, driven by its applications in construction, transportation, and renewable energy technologies. If successful, the ALSCON revamp could signal a new era of industrial progress for Nigeria.
