Nigerian and Chinese energy companies have signed a broad framework agreement aimed at accelerating power sector reform in Nigeria while positioning the country within the global lithium value chain, as China deepens its economic engagement across Africa.
The agreement was signed in Dubai between Chairman of Swiber Africa (Nigeria) Group, Dr Orji Uzor Kalu, and Chairman of China’s GCL Group, Zhu Gongshan.
It outlines cooperation across power system development, lithium resource exploitation and industrial chain integration, reflecting growing alignment between Nigeria’s domestic energy priorities and China’s Belt and Road Initiative.
Under the partnership, both firms plan to collaborate on building a next-generation power system to address Nigeria’s chronic electricity shortages, which continue to constrain industrial productivity and economic growth.
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GCL Group is expected to deploy its experience in integrated oil, gas and renewable energy projects across Africa, including work previously undertaken in Ethiopia and Djibouti.
Central to the power component of the agreement is the deployment of high-efficiency clean energy technologies and scenario-based power system solutions.
GCL plans to introduce a full-time-scale virtual power plant system already in use at the China–Singapore Suzhou Industrial Park, a platform that reportedly achieves load regulation accuracy of up to 94 per cent and enables intelligent energy management through rapid response and long-term forecasting capabilities.
The cooperation framework is structured to align with Nigeria’s Presidential Power Initiative, with proposed projects including three gigawatts of gas-fired power plants, four gigawatts of combined wind and solar capacity, alongside hydropower and coal-fired stations.
Grid modernisation projects are also expected to run concurrently, aimed at strengthening the generation-to-consumption energy chain and supporting Nigeria’s transition from manual grid operations to intelligent control systems.
Beyond electricity infrastructure, lithium resource development forms a second strategic pillar of the partnership.
With global demand for lithium batteries rising sharply amid the energy transition, lithium has emerged as a critical input for power storage, electric mobility and advanced manufacturing.
The agreement positions Nigeria to move beyond raw mineral extraction toward deeper participation in lithium processing and battery value chains.
For GCL Group, the deal advances its international expansion strategy under the Belt and Road framework.
For Nigeria, it represents another step toward addressing long-standing power deficits while leveraging mineral resources to attract industrial investment and technology transfer at a time of intensifying China–Africa economic cooperation.
