Nigeria targets $2bn investment in Aluminum production from Chinese GCL group

Nigeria’s push to revive activity in its metals industry has gathered momentum, as Shuaibu Abubakar Audu, minister for steel development, hosted a high-level delegation from China’s GCL Group to discuss a proposed major investment by the company in aluminium and steel production.

The visit is said to signal a growing foreign interest in Nigeria’s underdeveloped minerals value chain, with GCL Group indicating plans to submit a formal proposal for the establishment of a 3 million tonne-per-annum primary aluminium plant.

The proposed project is estimated cost over $2 billion, and when actualised, would rank among the largest single industrial investments in Nigeria’s metals sector in decades, a statement issued by Munirat Antoinette Lecky, special assistant on Digital and New Media to the Minister, seen by BusinessDay, Monday stated.

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According to the minister, the Federal Government is positioning Nigeria as a competitive destination for large-scale manufacturing by leveraging its vast mineral deposits, expanding domestic market and long-standing democratic stability.

He emphasised that there are huge opportunities for investors in greenfield steel plants, primary aluminium production, and the exploration of key raw materials such as bauxite and iron ore.

A key component of the discussions included potential strategic partnerships to revive legacy assets like the Aluminium Smelter Company of Nigeria, as well as collaboration with the Nigerian National Petroleum Company Limited to develop a Liquefied Natural Gas (LNG) facility using existing gas pipeline infrastructure, the statement stated.

In his remarks, Zhu Gongshan, chairman of GCL Group, expressed appreciation for the engagement, noting that GCL’s interest extends beyond processing to upstream investments in bauxite mining to ensure a steady supply for domestic aluminium production.

If realised, the aluminium plant could significantly reduce Nigeria’s dependence on imports and place the country among major global producers such as China, India, Russia, Canada and the United Arab Emirates, industry sources said.

Also present at the meeting was Orji Uzor Kalu, senator representing Abia North and former governor of Abia State, who pledged legislative support from the National Assembly to facilitate the projects.

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Sources hinted that the proposed investment could mark a turning point for Nigeria’s long-dormant steel and aluminium sectors, provided policy consistency, infrastructure readiness and investor protections are sustained.

The engagement is said formed part of broader efforts by the Ministry of Steel Development to attract long-term capital into heavy industry as Nigeria seeks to diversify its economy beyond oil exports.