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Nigeria eyes $2 billion Chinese investment for aluminium sector

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Update time : 2026-02-26 14:46:35
On a warm afternoon in Abuja, conversation turned to an industry many had long written off as dormant. Nigeria’s steel and aluminium ambitions, often discussed, rarely realised, were back on the table as the Minister of Steel Development, Shuaibu Abubakar Audu, received a delegation from GCL Group.

Rather than broad declarations, the meeting focused on a concrete proposal. The Chinese firm GCL signalled its intention to submit plans for a primary aluminium smelter designed to produce 3 million tonnes annually. With projected costs exceeding USD 2 billion, the scheme could become one of the most significant industrial undertakings in Nigeria’s metals space for several decades.

According to a statement released by Munirat Antoinette Lecky, the minister’s Special Assistant on Digital and New Media, the Federal Government sees the moment as an opportunity to reposition the country as a serious manufacturing destination. Officials argue that Nigeria’s abundant mineral reserves, expanding consumer base and relatively stable democratic environment together form a compelling case for large-scale investors.

In the course of discussions, attention was drawn not only to aluminium but also to the wider supply chain. Opportunities were identified in greenfield steel projects and in the extraction of raw materials such as bauxite and iron ore - resources regarded as essential if Nigeria is to reduce its dependence on imported inputs and finished products alike.

There was also talk of breathing life back into older industrial assets, notably the Aluminium Smelter Company of Nigeria. Energy supply, a longstanding obstacle for heavy industry, featured prominently. Possible collaboration with the Nigerian National Petroleum Company Limited was explored, particularly around the idea of developing a Liquefied Natural Gas facility using existing pipeline infrastructure.

Speaking during the visit, Zhu Gongshan, Chairman of GCL Group, suggested that the company’s interest would not stop at processing. Upstream investment in bauxite mining is also under consideration, a move intended to secure reliable feedstock for domestic aluminium production.

Should the smelter go ahead, industry observers believe Nigeria could significantly curb aluminium imports and potentially emerge as a more visible player alongside established producers such as China, India, Russia, Canada and the United Arab Emirates.

Also present at the meeting was Orji Uzor Kalu, Senator representing Abia North and a former governor of Abia State. He indicated that the National Assembly would be prepared to lend legislative support where required.

For many in the sector, however, the real test will lie beyond announcements. Policy consistency, functioning infrastructure and credible investor protections are likely to determine whether this initiative marks a genuine turning point for Nigeria’s long-quiet steel and aluminium industries. The engagement forms part of a broader ministerial effort to draw sustained capital into heavy manufacturing, as the country seeks to lessen its historic reliance on oil revenues and build a more diversified economy.

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