Nigeria signs $1.2b deal to revamp gas processing plant

Nigeria has taken a significant step towards reviving its dormant aluminium industry by signing a $1.2 billion contract with China’s CNCEC. The deal aims to revamp a gas processing plant crucial for aluminium production.

The contract, signed between CNCEC and BFI Group, the core investor in the Aluminum Smelter Company of Nigeria, marks the first step towards revitalising the smelter, which has been inactive for years due to legal and financial challenges.

The 135 million standard cubic feet per day gas processing plant, once operational, is expected to enable the production of around 300,000 tons of aluminium annually, said the Ministry.

The Nigerian government envisions the plant producing up to one million tons of aluminium and generating 540 megawatts of electricity, positioning the country as a major player in the global aluminium industry.

This project is seen as a catalyst for economic growth and job creation in Nigeria.

Attribution: Reuters

Subediting: M. S. Salama