- China has pledged increased investment in Nigeria’s energy sector, including support for renewable energy projects and infrastructure development.
- During a meeting in Beijing, China and Nigeria agreed to enhance cooperation on energy technology and advance initiatives such as a joint solar PV test lab and electric tricycle assembly plant.
China has committed to boosting investment in Nigeria’s energy sector following a high-profile meeting between President Xi Jinping and President Bola Tinubu in Beijing on September 3, 2024. The discussion marks a significant step in enhancing bilateral cooperation, particularly in energy development, as the two leaders aim to further their strategic partnership.
In a joint statement released after the meeting, China expressed its readiness to support Nigeria’s energy and mineral resource sectors. This includes encouraging its major companies to invest in Nigeria’s energy infrastructure and resource development, reflecting China’s broader strategy to aid Nigeria’s economic diversification and growth.
China also invited Nigeria to participate in its e-commerce and logistics sectors, indicating a willingness to integrate these areas with energy investments. The statement emphasised that the cooperation would help Nigeria leverage its energy resources more effectively, contributing to its economic stability and growth.
President Xi Jinping highlighted the importance of this strategic alignment, noting that strengthening ties between China and Nigeria would inject new energy into China-Africa relations and support progress among Global South countries. The leaders agreed to explore flexible regional financial mechanisms, such as local currency swaps, to facilitate bilateral trade, including energy transactions.
China’s support extends to enhancing Nigeria’s energy technology capabilities. The two nations agreed to collaborate on advancing Nigeria’s energy infrastructure, including nuclear energy, as part of the Belt and Road Initiative (BRI). This initiative has already been instrumental in building significant infrastructure projects in Nigeria, such as a deep sea port and rail lines, and will now focus on energy-related developments.
During the visit, President Tinubu secured a commitment from Huawei to establish a joint solar photovoltaic (PV) test lab in Nigeria, marking a significant step towards advancing renewable energy technology. Additionally, a Chinese firm pledged to set up an assembly plant for electric tricycles, supporting Nigeria’s transition to renewable energy and technology.
China is Nigeria’s largest bilateral lender, having provided $5 billion in loans by the end of March. This enhanced cooperation is expected to substantially impact Nigeria’s energy sector. The collaboration aims to drive development, improve energy infrastructure, and contribute to Nigeria’s more stable and self-reliant energy landscape, reinforcing the overall strength of China-Nigeria relations.