China and Nigeria Strengthen Economic Ties with $2 Billion Electric Vehicle Deal
The recent announcement of a $2 billion electric vehicle (EV) deal between China and Nigeria marks a significant milestone in Nigeria’s industrialization efforts and highlights the growing presence of Beijing in the West African nation. This development comes at a time when China has been actively engaging with Nigeria, particularly in the energy sector.
The news of this partnership was revealed during a meeting between China’s Ambassador to Nigeria, Yu Dunhai, and Dr. Dele Alake, the Minister of Solid Minerals Development. Ambassador Dunhai emphasized the importance of collaboration between the two countries to unlock Nigeria’s solid minerals potential, which is essential for EV battery production and the overall growth of Nigeria’s industrial sector.
China has long recognized Nigeria as a key partner in its foreign policy strategy, and this deal further solidifies the bilateral relations between the two countries. The recent meeting between Presidents Bola Ahmed Tinubu and Xi Jinping led to the decision to elevate Nigeria-China relations to a comprehensive strategic partnership, setting the stage for increased economic and technical cooperation.
Dr. Alake welcomed the Chinese investment in electric car manufacturing in Nigeria, highlighting the country’s readiness for business. He urged Chinese companies to invest in the entire value chain of mineral resources in Nigeria, from extraction to processing, in line with the government’s push for local industrialization.
For years, Nigeria has exported raw minerals to support foreign industries, but Dr. Alake stressed the importance of local processing to drive the country’s development. With abundant resources like lithium, Nigeria aims to establish local manufacturing facilities for electric vehicles and batteries, reducing its dependence on imported goods.
Plans are already underway to set up electric vehicle factories and other manufacturing ventures in Nigeria, with Chinese companies playing a significant role in the country’s mining sector. Dr. Alake expressed the government’s commitment to deepening collaboration with China, particularly in economic diversification through the development of solid minerals.
In addition to the EV deal, China has been actively investing in Nigeria throughout 2025. In April, the National Sugar Development Council signed a $1 billion agreement with a Chinese company to build a sugarcane production and processing facility. A new shipping route between Shanghai and Lagos has also been established, reducing transit times and improving regional trade logistics.
Furthermore, the China Development Bank approved a loan for a major railway project in Nigeria, further enhancing the country’s infrastructure as part of China’s Belt and Road Initiative. These developments underscore the growing economic ties between China and Nigeria and the potential for further collaboration in various sectors.
