Nigeria secures $2.5 billion investment from China for steel plant

plant installation scheduled for early 2026. This agreement highlights the strengthening economic relationship between Nigeria and China, paving the way for job creation, infrastructure development, and sustainable economic progress within the region. The $2.5 billion investment in the steel plant signifies a significant milestone for Nigeria’s steel industry, as it positions the country to become more self-reliant in steel production by utilizing its iron ore resources domestically.

Furthermore, the recent enactment of the Investment and Securities Act (ISA) 2025 is a notable achievement for Nigeria in embracing digital finance and positioning itself as a key player in the Fourth Industrial Revolution. The ISA provides regulatory clarity for digital assets, virtual asset service providers (VASPs), and tokenised securities under the supervision of the Securities and Exchange Commission (SEC). This landmark legislation sets the stage for Nigeria to leverage Chinese technological advancements and expertise in digital finance, opening up new avenues for investment and economic growth.

During the ‘Digital Asset Markets Strategy Masterclass Series’ in Lagos, Joseph Tegbe, the Director General of the Nigeria-China Strategic Partnership (NCSP), highlighted the importance of Chinese investment in driving infrastructure development and trade ties between the two nations. Tegbe revealed that Nigeria had secured significant investment commitments from Chinese companies, signaling a positive trajectory for economic cooperation. The plan to enable direct currency conversion between the Naira and Chinese Yuan underscores Nigeria’s efforts to reduce dependency on the US Dollar and strengthen economic ties with China.

In addition to the economic collaborations with China, Lagos State announced ambitious plans to issue a green bond for financing infrastructure projects and develop a securitisation policy to enhance liquidity for development needs. These initiatives demonstrate a proactive approach towards sustainable financing and resource mobilization for critical infrastructure projects. The focus on green financing aligns with global efforts to promote environmentally responsible investments and address climate change challenges.

The keynote address at the Masterclass Series emphasized the transformative potential of digital asset markets, including cryptocurrencies and tokenization of traditional assets, in driving wealth creation and economic prosperity across Africa. Dr. Nicholas Okoye, a global investment advisor, highlighted the role of digital finance in reshaping the financial landscape of Nigeria and Africa. By embracing digital asset markets, Africans have the opportunity to participate in wealth creation and contribute to the overall economic growth of the region.

In conclusion, the collaboration between Nigeria and China in the steel industry and digital finance sector signifies a significant step towards economic development, job creation, and infrastructure growth. The investments and regulatory reforms underscore a shared commitment to leveraging technology, innovation, and sustainable financing practices to drive long-term prosperity and economic transformation within the region. Nigeria’s strategic partnerships with China and the focus on digital asset markets are poised to unlock new opportunities for growth and development, positioning the country as a key player in the global economy.