World’s largest electric vehicle-producing country set to establish an EV plant in Nigeria

The initiative is a huge step forward for Nigeria's industrialization aspirations and reinforces Beijing's expanding presence in Nigeria, in a year when the East Asian country has been very active within Africa’s largest oil-producing country.

This new development was made known during a courtesy visit by China's Ambassador to Nigeria, Yu Dunhai, to Dr. Dele Alake, Minister of Solid Minerals Development.

During the visit, Ambassador Dunhai underlined the need for further collaboration between the two countries in unleashing Nigeria's solid minerals potential, a crucial component in EV battery production, and propelling Nigeria's industrial growth.

Dunhai also stated that China has always recognized Nigeria as an important partner in its foreign strategy.

The Chinese ambassador mentioned the recent meeting between Presidents Bola Ahmed Tinubu and Xi Jinping, during which both leaders decided to upgrade Nigeria-China bilateral relations to a comprehensive strategic partnership, paving the way for considerable economic and technical collaboration.

Dr. Alake, in response noted that the Federal Government has granted authority for China to develop electric car manufacturing factories in Nigeria, as he emphsized the idea that Nigeria is open for business.

He asked that the ambassador persuade Chinese businesses to make full-cycle investments in Nigeria, from extraction to processing, as reported by the Punch.

“For years, our minerals have been exported raw to fuel foreign industrialisation. That must change, Dr. Alake stated.

“We now prioritise local processing to drive Nigeria’s development. For instance, with the abundance of lithium, we want to see local manufacturing of electric vehicles and batteries,” he added.

“Plans are underway to establish electric vehicle factories and other manufacturing ventures in Nigeria.

Chinese companies are already deeply involved in Nigeria’s mining sector, from exploration to processing,” Dr. Alake continued.

“We aim to deepen this collaboration, especially in line with President Tinubu’s eight priority areas, notably economic diversification through solid minerals,” he added.

Deals between China and Nigeria in 2025 so far

The EV announcement follows a flood of Chinese investments and strategic engagement with Nigeria so far in 2025.

In April, the National Sugar Development Council (NSDC) inked a $1 billion agreement with Chinese company SINOMACH to build a large-scale sugarcane production and processing facility.

Mr. Kamar Bakrin, NSDC Executive Secretary, told the News Agency of Nigeria (NAN) that the investment will alter Nigeria's sugar sector and strengthen China's strategic footprint in the nation.

216 Chinese businesses traveled to Nigeria in March to look for potential investment opportunities. Interestingly, 74 of them specifically indicated interest in Nigeria's oil industry, indicating China's intention to diversify its holdings in the nation's important sectors.

A new shipping route that provides an exceptional 27-day transit time between Shanghai and Lagos began in February when the MV Great Cotonou, a Con-Ro vessel from China, arrived at the PTML facility in Lagos, West Africa's largest multipurpose RO/RO facility.

It is anticipated that this innovation would transform the logistics of regional trade.

In January, the China Development Bank approved a $254.76 million loan for a major railway project in Nigeria, expanding the country's railway modernization program as part of China's Belt and Road Initiative.

By Chinedu Okafor, Business Insider Africa

Video - Unilever Nigeria reports 79 percent profit surge in 2024

The company says growth in its food and personal care segments helped fuel the profits. However, Unilever remains cautious about macroeconomic risks, citing volatile oil prices, forex shortages, and unfavorable fiscal policies.

CGTN

German automaker, Volkswagen set to begin e-tractor manufacturing in Nigeria

 

Volkswagen's introduction of e-tractors in Nigeria is a significant step towards enhancing agricultural mechanization in the country.

Nigeria’s Minister of Foreign Affairs, Hon. Yusuf Maitama Tuggar, disclosed the development after a meeting with Germany's Minister of State, Mrs. Katja Keul, at the G20 Foreign Ministers' Meeting.

“We welcomed Volkswagen’s plans to introduce e-tractors to Nigeria, backed by the German government, as part of efforts to enhance agricultural mechanization,” Tuggar said.

The initiative is part of ongoing efforts by Nigeria and Germany to strengthen economic and industrial ties, with a focus on economic partnerships, regional security, and cultural collaboration.

Volkswagen's e-tractors are expected to revolutionize Nigeria’s agricultural sector by enhancing mechanization and boosting productivity.

Nigeria’s automotive industry

Despite the presence of local players in the industry, Nigeria has struggled to attract leading global manufacturers due to the non-implementation of the Auto Industry Development Plan.

Experts argue that the growth of the country’s automotive sector hinges on the full implementation of the Nigeria Auto Industry Development Plan, which has been approved by the Federal Executive Council but has yet to be signed into law.

Last year, Nigeria missed the opportunity to host Volkswagen’s new Body Shop and Assembly Plant, as the automaker instead finalized an agreement with the Egyptian government for its establishment.

The agreement followed Egypt’s introduction of the Automotive Industry Development Programme (AIDP), designed to promote local value addition, increase vehicle production, attract investment, and improve emission standards in the automotive sector.


Volkswagen’s return to Nigeria after decades signals growing confidence in the country’s economy after years of mismanagement and instability.

Volkswagen’s footprint in Africa

Volkswagen has established a new "Sub-Saharan" region, encompassing all countries south of the Sahara, to strengthen its presence and operations across Africa.

The newly formed Volkswagen Group Africa will oversee the company’s vision and strategic direction on the continent, where the brand has enjoyed decades of success.

Currently, Volkswagen operates manufacturing and assembly facilities in South Africa, Kenya, Rwanda, and Ghana. In Rwanda, the company has been providing mobility solutions since 2018.

Notably, Volkswagen has already piloted a similar initiative in Rwanda, known as the GenFarm Project, which offers e-powered mechanized farming services to rural areas.

Last year, the group announced the start of operations of its multifunctional facility to pilot modern farming with e-tractors in Africa. The facility is in Gashora, Rwanda, about 60km from the capital, Kigali.

The project features e-tractors with swappable batteries, making sustainable farming more accessible and affordable for local farmers.

By Solomon Ekanem, Business Insider Africa

Manufacturing activity rebounds in Nigeria as cash crisis eases

Nigeria’s manufacturing activity pulled off a sharp growth last month, shaking off successive contractions in the two months preceding April.

The growth was recorded as the squeeze resulting from the central bank’s push to wean Africa’s largest economy off dependence on physical cash softened.

The country’s Purchasing Manager Index (PMI) came in at 53.8 for the month on increased production level and improvement in new business, according to newly issued factory activity data.

A reading higher than 50 points to growth, while any below that threshold implies a shrinking in PMI, which assesses the overall direction that business condition in the manufacturing industry is headed.

Hiring was restrained and employment consequently slowed as companies still grappled with uncertainty in some way, following the crisis.

“The easing of the cash shortage challenge in April saw improvement in both output and consumer demand,” Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, said.

Stanbic IBTC Bank works alongside S&P Global and Nigeria’s statistics office every month to provide the data.

“While the easier access to cash caused business activities to expand across key sectors (Agriculture, manufacturing, services and wholesales and retails sectors), firms however maintained caution in increasing staff head count,” Mr Oni further stated.

His optimism for activity in the near term is measured, considering that sentiment remains relatively weak and given the signals that access to cash will be steady, not dramatic.

The document highlighted a steep jump in input costs for manufacturers in April, not altogether unanticipated as Nigeria’s inflation climbed to 22 per cent in the preceding month, closing in on its 18-year peak.

Even though firms passed on the increased cost to customers, that was done sensitively in order to attract them, leading to the slightest rate of selling price increase in three years.

“Business sentiment remained subdued in April, despite a slight pick-up from March. In fact, optimism was among the lowest seen since the survey began in January 2014,” the report said.

By Ronald Adamolekun, Premium Times

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