Nigeria signs $1.2 billion deal with Chinese state-owned company to revamp key gas plant

Nigeria has inked a $1.2 billion deal with a Chinese firm to revitalize a gas processing facility, a move that officials say could propel the African country to a leading position in aluminum production.

The deal between the Chinese state-owned CNCEC and the BFI Group, a major investor in the Aluminum Smelter Company of Nigeria, is expected to revive the 135 million standard cubic feet gas processing facility plant at the smelter. It was announced Tuesday by Nigeria's minister of state for gas via a post on the social platform X.

Minister of State for Gas Ekperikpe Ekpo expressed optimism about the “significant investment,” stating that it would position the smelter “back on the path to becoming a leading aluminum producer for both domestic and international markets.”

Nigeria and China’s economic relationship deepened in 2016, when the administration of former President Muhammadu Buhari visited Chinese President Xi Jinping and signed a number of agreements. Since then, Chinese companies have been contracted to build railways and provide infrastructure in Africa’s most populous country.

Despite being a major oil producer in Africa, Nigeria has some of the world’s highest poverty and hunger levels.

President Bola Tinubu, who took office last year, initiated reforms to reduce government spending and attract foreign investment. However, the country continues to face economic challenges, including a 28-year high inflation rate. Its currency, the naira, is at record lows against the dollar.

Many Nigerians have taken the streets in recent months to protest against the economic hardship they say is caused by the reforms. In August, at least 20 protesters were shot dead and hundreds of others were arrested.

By Dyepkazah Shibayan, AP

Nigeria's NNPC signs 10-year gas sale deal with Dangote Refinery

Nigeria's state oil firm, NNPC Ltd said on Wednesday one of its subsidiaries has agreed to supply 100 million standard cubic feet of gas per day to the Dangote oil refinery for the next 10 years.

Financial details were not disclosed.

Under the agreement, NNPC Gas Marketing Limited will supply the refinery built by Nigerian billionaire Aliko Dangote in Lagos with natural gas for power generation and feedstock. The contract has options for renewal and additional supply.

NNPC, Africa's biggest oil producer, is seeking to promote domestic gas consumption for industrial growth. 

By Isaac Anyaogu,Reuters

Nigeria recovered $5 billion in stolen assets over 25 years

Nigeria has successfully recovered over $5 billion in assets over the past 25 years, according to a report from the Civil Society Legislative Advocacy Centre (CISLAC).

・Nigeria has recovered over $5 billion in stolen assets in the past 25 years.

・Significant amounts were returned from Switzerland and the United States.

・Nigeria has achieved only 29% of key asset recovery indicators.

Nigeria has successfully recovered over $5 billion in assets over the past 25 years, according to a report from the Civil Society Legislative Advocacy Centre (CISLAC).

CISLAC’s Executive Director, Auwal Ibrahim Musa (Rafsanjani), shared this during the launch of the 2024 Report on the Common African Position on Asset Recovery (CARPA) in Nigeria. CARPA, a framework adopted by the African Union in 2020, aims to support African nations in recovering illicit funds.

“Over the past 25 years, Nigeria has recovered over $5 billion in stolen assets, including significant sums returned from Switzerland and the United States. Some notable cases include the Abacha assets, where hundreds of millions of dollars looted by former military ruler Sani Abacha were repatriated after decades of international negotiations,” he said.

Despite these recoveries, Mr. Musa highlighted persistent challenges in managing returned assets, noting that there’s still much to be done, especially when it comes to involving citizens and civil society.

Nigeria has achieved just 29% of key asset recovery indicators, hindered by the absence of a unified anti-corruption strategy and fragmented coordination among agencies, which continue to slow down recovery efforts.

He pointed out the lack of essential frameworks, like whistleblower protection channels, which would empower citizens to report corruption-related issues more safely.

The CISLAC report noted that Nigeria, along with other African nations like Morocco and Kenya, struggles to effectively manage returned assets, which limits their impact on national development.

The report emphasised the need for stronger international cooperation to enhance asset recovery efforts and combat corruption across the continent.

Adekunle Agbetiloye, Pulse 

Related story: Court in Nigeria tells government to account for recovered Abacha loot

Nigeria signs $1.2 billion deal to revamp gas plant for aluminium smelter

Nigeria has signed a $1.2 billion contract with Chinese state-owned engineering firm CNCEC to revamp a gas processing plant crucial for the country's aluminium production, its Petroleum Ministry said.

The contract signed between CNCEC and BFI Group - the core investor in the Aluminum Smelter Company of Nigeria - is the first step towards reviving the dormant smelter, which has been plagued by years of inactivity due to legal disputes and financial issues.

The Petroleum Ministry said late on Monday that the deal would see CNCEC resuscitate the 135 million standard cubic feet per day gas processing plant at the dormant smelter, which can produce around 300,000 tons of aluminium annually.

Minister of State for Gas Epkerikpe Ekpo said the plant's restart would allow Nigeria to develop multiple stages of the aluminium production process and position it "as a major producer of aluminium in Africa and globally".

The plant is expected to produce around one million tons of aluminium annually and generate up to 540 megawatts of electricity, Ekpo said.

By Camillus Eboh, Reuters

Who are the Lakurawa insurgent group threatening Nigeria?

Nigeria's military has said a new Islamist insurgent group from Niger and Mali, known as Lakurawa, was operating in the northwest and officials and residents said it killed 15 people last Friday in its most high profile attack to date.

Here is what we know about the group:


WHO ARE THE LAKURAWA?

The military said the previously unknown Lakurawa was linked to Islamic State and operated in the states of Kebbi and Sokoto.

The Lakurawa first emerged in northwest Nigeria in 2018, when the group started helping locals fight armed gangs known as bandits, local media reported.

But the relationship soon soured as residents began accusing Lakurawa of stealing their cattle and seeking to impose strict Islamic law. The group retreated to the border areas of Niger and Mali but would make some incursions into Nigeria.

Nigeria defence spokesperson Edward Buba said the group was not initially considered a threat.
He said Lakurawa increased its presence in Nigeria after the July 2023 military coup in Niger, which brought a stop to joint military patrols along the countries' borders.

WHAT THREAT DOES LAKURAWA POSE?

Nigeria is already fighting several armed groups, including Islamist militants Boko Haram and its offshoot Islamic State West Africa Province and several bandit gangs.

Another insurgency could further destabilise the region and suck an already stretched military into a long-drawn fight, security analysts said.

"The fact that (Lakurawa members) engage in preaching and impose harsh edicts on local communities indicates they are ambitious, potentially thinking big picture about eventually extending their territorial influence to Nigeria," said James Barnett, a research fellow at the Hudson Institute who has conducted fieldwork in the northwest.

HOW IS NIGERIA HANDLING THE THREAT?

The Nigerian military has resumed joint patrols with Niger and promised to take the offensive to Lakurawa.

The threat by the group was important enough for Nigeria's acting Chief of Army Staff, Lieutenant General Olufemi Oluyede to visit Sokoto to rally his troops.

Oluyede also appealed for support from residents to fight the insurgents. 

By Ope Adetayo, Reuters