Nigeria’s ALSCON to Resume Operations as BFI & CNCEC Forge $3.5 Billion Partnership

Nigeria’s ALSCON to Resume Operations as BFI & CNCEC Forge $3.5 Billion Partnership

The Federal Government has facilitated the signing of a $3.5 billion agreement between BFI Group and China National Chemical Engineering Corporation (CNCEC) to revive the Aluminium Smelter Company of Nigeria (ALSCON) in Ikot Abasi, Akwa Ibom State.

This significant deal, signed on Monday, November 11, aims to restart operations at the ALSCON plant, marking a crucial step in Nigeria’s industrialisation efforts.

The agreement follows a series of discussions, including a meeting between the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, CNCEC officials, and Dr. Reuben Jaja, Chairman of BFI Group, which was held during President Bola Tinubu’s state visit to Beijing earlier this year.

CNCEC, China’s largest petrochemical engineering company, will serve as the technical partner to BFI Group, a U.S.-based firm, in the project.

Minister Ekpo, represented by Permanent Secretary Nicholas Ella, highlighted the importance of the agreement, noting that it symbolises the strengthened cooperation between China and Nigeria. “This partnership will expedite the actions needed to restart the ALSCON plant,” he said.

The ALSCON plant, which is valued at approximately $3.5 billion, will utilise Nigeria’s abundant natural gas resources to power its operations.

The plant’s expected production capacity is around one million metric tonnes of aluminium annually, positioning Nigeria as a significant player in both the domestic and global aluminium markets.

Deputy Gas Minister Ekpo emphasised that the partnership reflects President Tinubu’s commitment to using Nigeria’s natural gas resources for industrial development.

He further stated that once operational, the ALSCON plant will boost both the aluminium upstream and downstream sectors, contributing significantly to Nigeria’s economic growth.

The project also includes a gas-fired power plant with the capacity to generate approximately 540 MW, further supporting the country’s energy needs.

BFI Group Chairman, Dr. Reuben Jaja, expressed optimism about the project, noting that President Tinubu’s engagement with Chinese President Xi Jinping had already yielded positive results for the project’s progress.

The partnership between BFI and CNCEC will also foster broader collaboration in petrochemicals, chemical engineering, natural gas processing, fertiliser production, power generation, and infrastructure development, all areas aligned with CNCEC’s core expertise.

CNCEC Chairman, Mr. Bao Guandong, praised Nigeria’s vast oil and gas reserves and reiterated CNCEC’s commitment to the successful execution of the project, emphasising the importance of safety, quality, and timely completion.

“This project is a win-win for both parties, and we will dispatch our best engineers to ensure its success,” Guandong stated.