Nigerian, Chinese firms sign pact on power reform, lithium value chain

Nigerian, Chinese firms sign pact on power reform, lithium value chain

Nigeria and China’s GCL Group, represented by Gongshan, have signed a framework cooperation agreement in Dubai aimed at strengthening collaboration in the energy sector. The deal focuses on power system development, strategic lithium resource exploitation, and industrial chain integration, and is positioned as part of broader China–Nigeria cooperation under the Belt and Road Initiative.

The agreement comes at a time when Nigeria continues to face persistent power shortages and a weak electricity grid, which have hindered industrial growth and improvements in living standards. Leveraging over 20 years of experience in oil, gas, and renewable energy projects across Africa, GCL Group plans to help address Nigeria’s energy deficits by developing a new-generation power system and supporting the creation of a lithium battery industry chain.

Under the framework, GCL is expected to deploy high-efficiency clean energy technologies, including an advanced virtual power plant system already in use in China, designed to deliver intelligent energy management and precise load regulation. The cooperation aligns with Nigeria’s Presidential Power Initiative and includes plans for gas-fired, wind, solar, hydropower, and coal-fired power projects, alongside major grid upgrades to modernise electricity generation, transmission, and distribution.

In addition to power infrastructure, the agreement places strong emphasis on lithium resource development, reflecting the growing global demand for lithium batteries and Nigeria’s potential role in the evolving energy and manufacturing value chain.