In a bold step toward its energy transition agenda, the Federal Government has given approval for the establishment of electric vehicle (EV) factories in Nigeria by Chinese investors. The development comes as part of plans to gradually phase out fossil fuel usage in the country, signaling a shift toward cleaner, renewable alternatives. However, concerns are mounting over the implications for Nigeria’s solid minerals sector, which remains largely underexplored and underutilized.
Chinese Ambassador to Nigeria, Yu Dunhai, made the disclosure during a courtesy visit to the Minister of Solid Minerals Development, Dr. Dele Alake, in Abuja. According to a statement issued by the minister’s Special Assistant on Media, Segun Tomori, Ambassador Dunhai highlighted China’s commitment to deepening industrial cooperation with Nigeria, particularly in unlocking the potential of the country’s vast mineral resources to support EV production.
“Nigeria is a great country blessed with tremendous natural resources. China has always placed Nigeria in a pivotal position in its foreign policy,” the ambassador said, emphasizing the need for closer ties between both nations.
He also referenced the recent high-level meeting between President Bola Ahmed Tinubu and Chinese President Xi Jinping, where both leaders agreed to elevate bilateral relations to a comprehensive strategic partnership. The move, Dunhai noted, has created new opportunities for collaboration, especially in the areas of technology and sustainable energy.
While the plan to host Chinese EV manufacturing in Nigeria has been widely welcomed as a step toward environmental sustainability and industrial growth, analysts say it also presents a critical dilemma: the risk of relegating the local solid minerals sector to a mere source of raw materials, rather than a driver of full-scale economic development.
Nigeria is home to vast reserves of lithium, cobalt, and other critical minerals essential for EV battery production. However, without a clear framework for local beneficiation, experts warn the country could replicate the extractive patterns of the oil era—exporting raw resources with minimal domestic value addition.
Industry stakeholders are now calling on the federal government to ensure that any EV-related investments from China or other partners include provisions for local content development, mining infrastructure, and skills transfer to empower Nigerian industries and workforce.
As the country transitions away from fossil fuels, the focus now shifts to whether Nigeria can balance foreign partnerships with strategic national interests — ensuring that the green economy also benefits Nigerians beyond the assembly lines.
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