Nigeria has signed a $1.2 billion agreement with China National Chemical Engineering Corporation (CNCEC) to restore operations at a major gas processing plant integral to the country’s aluminium production capacity.
Announced by the Minister of Petroleum Resources (Gas), Epkerikpe Ekpo, the deal is strategic step toward revitalising the Aluminum Smelter Company of Nigeria (ALSCON) in Akwa Ibom, which has been inactive due to prolonged legal and financial challenges.
Partnering with BFI Group, ALSCON’s core investor, CNCEC is set to rehabilitate the 135 million standard cubic feet per day gas processing facility at ALSCON.
The effort aims to enable annual aluminium production of 300,000 tons, with plans to scale up to one million tons, potentially establishing Nigeria as a leading aluminium producer in Africa and beyond.
In addition to boosting aluminium output, the project will generate up to 540 megawatts of electricity, addressing critical power needs in the region and contributing to Nigeria’s industrial and energy landscape.
ALSCON’s Managing Director, Dmitriy Zaviyalov, previously noted that reactivating the smelter requires a $500 million investment to restore equipment and implement power solutions.
During a recent visit to President Bola Tinubu, ALSCON Chairman Alexey Arnautov emphasised the investment’s importance for Nigeria’s economic growth.
