Nigeria’s ALSCON Aluminum Smelter Set for Revival with BFI Group and CNCEC Partnership
The federal government of Nigeria oversaw the signing of an agreement between BFI Group and China National Chemical Engineering Corporation (CNCEC) for the restarting of the Aluminum Smelter Company of Nigeria (ALSCON) in Ikot Abasi, Akwa Ibom State. This event follows a series of discussions held between Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, top officials of CNCEC, and Dr. Reuben Jaja, Chairman of BFI Group, during President Bola Tinubu's state visit to Beijing earlier this year.
CNCEC, China's largest petrochemical engineering firm, will serve as a technical partner to BFI Group USA in the project to resuscitate ALSCON, a facility valued at approximately $3.5 billion. ALSCON is set to leverage Nigeria’s natural gas resources to rejuvenate its aluminum smelting capabilities and secure Nigeria's place as a significant producer of aluminum for both domestic and international markets. The plant's potential capacity is estimated at around one million metric tonnes of aluminum annually.
Deputy Gas Minister Ekpo, represented by Permanent Secretary Nicholas Ella, noted that the agreement marked a crucial partnership between BFI Group and CNCEC, describing it as an epoch-making ceremony. Ekpo emphasized that the project underscores President Bola Tinubu's commitment to promoting investment in Nigeria's abundant natural gas resources to drive industrialization and economic growth.
“This agreement demonstrates the strong commitment between China and Nigeria to collaborate and foster economic development for the benefit of both nations. We expect that this agreement will enable BFI Group and CNCEC to expedite necessary actions to restart the ALSCON plant,” Ekpo stated.
Once operational, ALSCON is expected to regain its position as a key driver of Nigeria's aluminum upstream and downstream sectors. The plant will utilize natural gas, positioning Nigeria as a significant aluminum producer in Africa and beyond, with a production capacity of one million metric tonnes annually, as well as generating approximately 540 MW of power from its gas-fired power plant.
Dr. Reuben Jaja, Chairman of BFI Group, highlighted that the earlier meeting between President Tinubu and Chinese President Xi Jinping has begun to yield results. “Today’s event is a step towards the timely reactivation of ALSCON, solving one of its most significant challenges—gas supply.”
Jaja praised CNCEC for its competence as a strategic partner, emphasizing their shared vision for rehabilitating and expanding ALSCON. “CNCEC has demonstrated a clear interest in supporting Nigeria’s industrial development by promoting efficient natural gas utilization, reducing carbon emissions, fostering energy industry growth, enhancing employment opportunities, and accelerating economic growth,” he added.
CNCEC Chairman Bao Guandong also spoke at the event, acknowledging Nigeria's abundant oil and gas reserves and affirming BFI Group as a reliable partner. He stated, “This project represents a win-win for both parties. We will deploy our best workers and engineers to ensure the safety, quality, and timely completion of the project. CNCEC International will fully support the financing and operational goals of ALSCON.”
The successful resuscitation of ALSCON is anticipated to boost Nigeria’s industrial capabilities, improve energy utilization, and foster long-term economic partnerships between Nigeria and China.
