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FG Approves China’s Plan to Set Up Electric Vehicle Factories in Nigeria

The Federal Government has granted approval for the establishment of electric vehicle (EV) factories in Nigeria by Chinese investors, as part of efforts to unlock the potential of the country’s solid minerals sector and drive industrialisation.

This was disclosed during a courtesy visit by the Chinese Ambassador to Nigeria, Yu Dunhai, to the Minister of Solid Minerals Development, Dr. Dele Alake, in Abuja.

A statement issued on Sunday by Segun Tomori, Special Assistant on Media to the Minister, confirmed the development and highlighted the deepening collaboration between the two nations.

Ambassador Dunhai stressed the need for stronger ties between Nigeria and China to enhance local value addition in mineral resources, particularly lithium, which is crucial for EV battery production. He also reaffirmed China’s longstanding interest in Nigeria as a key partner in Africa, citing the strategic importance both countries attach to their bilateral relationship.

Referencing the recent meeting between President Bola Tinubu and Chinese President Xi Jinping in Beijing, the envoy noted that both leaders agreed to upgrade their relationship to a comprehensive strategic partnership. According to Dunhai, this agreement has paved the way for increased cooperation in sectors such as mining and manufacturing.

“Plans are underway to establish electric vehicle factories and other manufacturing ventures in Nigeria,” the ambassador said. “Chinese companies are already involved in Nigeria’s mining sector, and we want to build on this foundation, in line with President Tinubu’s economic diversification agenda.”

Minister Alake welcomed the move and called for full-cycle investments by Chinese firms—ranging from extraction to local processing and manufacturing.

“For decades, our minerals have been exported in raw form to develop foreign economies. That trend must change,” Alake said. “We now insist on local value addition. With the abundance of lithium, we want to see Nigerian-made electric vehicles and batteries.”

He also urged China to support Nigeria’s crackdown on illegal mining and ensure its companies comply with regulations. The minister referenced a recent viral video showing a Chinese national allegedly bribing local security officials, warning that such incidents damage China’s otherwise strong reputation in Nigeria.

“While most Chinese firms are law-abiding, a few bad actors are creating a negative image. We’re taking action to sanitize the sector and bring violators—both local and foreign—to justice,” Alake added.

In response, Ambassador Dunhai assured the Nigerian government of China’s commitment to ethical investment. He said the Chinese government maintains a zero-tolerance policy for illegal mining and continues to encourage its companies in Nigeria to implement Corporate Social Responsibility (CSR), follow environmental guidelines, and uphold safety standards.

The minister also noted the success of the newly introduced Mining Marshals in tackling illegal mining and improving overall compliance.

With this renewed partnership, Nigeria is positioning itself not only as a mining hub but also as a future player in global electric vehicle production.

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