NIGERIA has sealed a $1.2bn agreement with China’s state-owned engineering firm, CNCEC, to rehabilitate a critical gas processing plant linked to the country’s aluminium production industry, according to the petroleum ministry. The contract was formalised between CNCEC and BFI Group, the main investor in the Aluminium Smelter Company of Nigeria (ALSCON), marking a major step forward for the once-stalled smelter that has long been idle due to protracted legal battles and funding obstacles.
The petroleum ministry disclosed late Monday that the arrangement entails CNCEC rejuvenating the gas processing facility that supplies ALSCON, which has a capacity to produce approximately 300,000 tonnes of aluminium annually. The gas plant, originally designed to process 135 million standard cubic feet per day, is essential for the smelting process and will now undergo substantial upgrades and repairs to bring it back into operation.
Epkerikpe Ekpo, Nigeria’s Minister of State for Gas, expressed optimism about the project, emphasising that restarting the plant would enable Nigeria to undertake more stages of aluminium production locally. ‘This agreement will position Nigeria as a significant aluminium producer not only in Africa but also globally,’ Ekpo said, underlining the potential economic impact of the plant’s revival.
Once operational, the revamped gas plant is anticipated to produce an estimated one million tonnes of aluminium per year while also generating up to 540 megawatts of electricity, a significant boost for the region’s power supply. The revived facility will have a dual impact by contributing to Nigeria’s energy grid and aiding in aluminium production—a commodity essential for various industries including automotive, construction, and electronics.
This agreement comes as Nigeria seeks to broaden its industrial base and reduce reliance on oil exports, with the aluminium sector viewed as a strategic asset. Industry observers see the project as a critical piece of Nigeria’s ambition to position itself as a manufacturing hub within West Africa and a significant player in global aluminium markets.
The ALSCON plant, which had been dormant for years, has been a topic of debate and legal contention, often cited as an example of Nigeria’s struggles with resource management and industrialisation. With the latest agreement, both CNCEC and BFI Group aim to overcome these historical issues, laying the groundwork for a plant that can support both national energy needs and aluminium production targets.
The Nigerian government, in collaboration with foreign partners, appears committed to finally bringing the ALSCON plant back to life, potentially opening new economic avenues and solidifying Nigeria’s role in Africa’s evolving manufacturing landscape.
