The Federal Government of Nigeria has granted approval for China to establish electric vehicle (EV) factories in Nigeria. This initiative is part of a broader strategy to enhance industrial development through bilateral cooperation. The announcement was made during a visit by the Chinese Ambassador to Nigeria, Yu Dunhai, to the Minister of Solid Minerals Development, Dr. Dele Alake, in Abuja.

Ambassador Dunhai highlighted the importance of strengthening collaboration between the two nations, particularly in leveraging Nigeria’s solid mineral resources to support electric vehicle manufacturing. He conveyed China’s plans to set up EV manufacturing plants in Nigeria, underscoring Nigeria's crucial role in China's foreign policy and its vast natural resource endowment.

Dr. Alake emphasized Nigeria’s commitment to welcoming foreign investors, especially those focused on adding local value in the mining and manufacturing sectors. He noted the country's shift from exporting raw minerals to prioritizing local processing. Alake stated, "For years, our minerals have been exported raw to fuel foreign industrialisation. That must change. We now prioritise local processing to drive Nigeria’s development. For instance, with the abundance of lithium, we want to see local manufacturing of electric vehicles and batteries." He encouraged Chinese investors to integrate their operations within Nigeria, from mineral extraction to processing, to tap into the local market and reduce dependence on fossil fuels through EV adoption.

Ambassador Dunhai voiced support for Nigeria’s localization policy, aligning with President Xi Jinping’s priority of supporting African industrialization. He noted that Chinese companies are already involved in Nigeria’s mining sector, from exploration to processing, and aim to deepen this collaboration in line with President Tinubu’s economic diversification goals. The Chinese government consistently instructs its companies in Nigeria to comply with local laws, uphold Corporate Social Responsibility, and maintain environmental and safety standards. China has a zero-tolerance policy for illegal mining and pledges full cooperation with Nigerian authorities to prosecute offenders.

Dr. Alake acknowledged the longstanding and productive relationship between Nigeria and China, noting that most Chinese firms operate legally. However, he raised concerns about the actions of a few rogue actors, including some Chinese nationals, which undermine the good work of compliant firms. He sought cooperation in ensuring that such culprits are brought to justice. The minister also highlighted the positive impact of the Mining Marshals in tackling illegal mining activities, noting their role in raising awareness and compliance among operators.

The Chinese Ambassador also reiterated that both the embassy and the Chinese government have consistently urged Chinese enterprises in Nigeria to comply with local laws and regulations, engage in Corporate Social Responsibility, and follow environmental and safety protocols. He highlighted that the Chinese authorities maintain a strict stance against illegal mining, indicating their willingness to collaborate with the Nigerian government to ensure that those suspected of wrongdoing are held accountable.