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China to establish electric vehicle factories in Nigeria

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The Chinese Ambassador to Nigeria, Yu Dunhai, has called for deeper collaboration between China and Nigeria to unlock the potential of Nigeria’s solid minerals sector, specifically through the establishment of electric vehicle factories.

The Ambassador made this appeal during a courtesy visit to the Minister of Solid Minerals Development, Dr. Dele Alake, over the weekend in Abuja.

Dunhai described Nigeria as a nation richly endowed with natural resources and reiterated China’s commitment to fostering strategic ties with Nigeria. He referenced the recent meeting between Presidents Bola Tinubu and Xi Jinping, during which both leaders agreed to elevate bilateral relations to a comprehensive strategic partnership, paving the way for expanded cooperation.

Highlighting China’s ongoing involvement in Nigeria’s mining industry, the Ambassador noted that Chinese firms are engaged in various activities ranging from exploration to mineral processing. He expressed a desire to strengthen collaboration, particularly in alignment with President Tinubu’s economic diversification agenda, which prioritises the development of the solid minerals sector.

Dunhai also stressed the importance of compliance and corporate responsibility, stating that the Chinese government maintains a zero-tolerance policy for illegal mining. He affirmed that Chinese firms operating in Nigeria have been urged to follow local laws, implement corporate social responsibility initiatives, and observe environmental and safety standards. He assured the Nigerian government of China’s readiness to assist in bringing violators to justice.

In response, Dr. Alake welcomed the call for deeper cooperation and acknowledged the positive contributions of many Chinese companies in the sector. However, he raised concerns about illegal activities involving some operators, referencing a recent viral video allegedly showing a Chinese national bribing local security personnel. He reiterated the government’s resolve to clamp down on such misconduct, noting that swift actions have already been taken against some illegal operators.

Alake highlighted the role of the Mining Marshals in combating illegal mining, noting that the special unit has significantly increased compliance and awareness. He underscored Nigeria’s shift from raw mineral exports to local value addition, emphasizing that future investments must focus on in-country processing and manufacturing. With Nigeria’s vast lithium reserves, he stressed the importance of establishing facilities for producing electric vehicles and batteries domestically.

The Minister encouraged Chinese investors to adopt a full-cycle investment model that covers extraction, processing, and manufacturing within Nigeria. He pointed out that the country’s large consumer market and focus on reducing fossil fuel dependence make it an ideal destination for electric vehicle production.

Ambassador Dunhai welcomed Nigeria’s local value-addition initiative and reaffirmed China’s support for African industrialisation. He disclosed that plans are underway to establish electric vehicle factories and other manufacturing projects in Nigeria, reflecting a shared commitment to sustainable economic development.

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