Nigeria, China Ink Major Steel Deal As Abuja Seeks To Cut Infrastructure Deficit

CHENGDU, CHINA, April 15, 2025, In a major step towards deepening Sino-Nigerian economic cooperation, Chart & Capstone Integrated Ltd, a Nigerian indigenous company, has signed a financial and technical agreement with Chinese industrial giant, Sinomach, HE, at the Sinomach Headquarters in Deyang, Sichuan Province. The event marks the official commencement of a landmark Iron-to-Steel industrialization project that promises to boost Nigeria’s steel production capacity and create long-term industrial value for both countries.

In his address at the signing ceremony, Chief Immanuel Abel Edijala, Chairman and CEO of Chart & Capstone, expressed gratitude for the warm hospitality extended to the Nigerian delegation by Sinomach, HE. He acknowledged the support of key Nigerian government officials, including the Acting Consular General, Dr. Ilesanmi Abiodun Bakare, and noted the strategic involvement of the Nigeria-China Strategic Partnership (NCSP), led by Director General Mr. Joseph Tegbe.

Chief Edijala highlighted the project’s evolution, tracing its roots to an MOU signed in Nigeria in August 2024 and the endorsement received during the 2024 FOCAC event in Beijing. He commended Nigeria’s Honourable Minister of Solid Minerals Development, Mr. Dele Alake, for granting the project Pioneer Status and facilitating the issuance of an exploration license covering 40 square kilometers of iron deposit in Kogi State.

The project, Chief Edijala noted, aligns with both nations’ economic goals, especially China’s push for outbound capital investment and Nigeria’s need for industrial diversification. With a GDP of over $362 billion and a young population exceeding 220 million, Nigeria remains an attractive destination for Chinese investment. The bilateral project is also seen as a key pillar of the Belt and Road Initiative.

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The agreement with Sinomach-HE positions the company to play a pivotal role in the construction and equipping of both iron-making and steel-making plants in Nigeria. According to Edijala, the plants will be located in Kogi and Delta States, with the Delta State government already pledging land allocation in Oleri town, Udu LGA, as a designated Special Economic Zone.

Chart & Capstone has already begun exploration on the licensed iron ore site and engaged a Chinese firm, WSGRI Engineering & Survey Inc. (a subsidiary of Minmetals/MCC), to conduct geological surveys and core drilling in line with NI 43-101 standards. The company is also working with local consultancy firm, Plyse Professional Services, to complete its financial feasibility studies.

Timelines have been set for the full implementation of the project, with the signing of the EPC contract and financial close expected byv December 2025. Project construction is anticipated to begin in the first quarter of 2026, with equipment delivery by the third quarter. Pre-commissioning and functional testing are targeted for mid-2027.

Chief Edijala praised the technical capacity of Sinomach-HE, citing a successful inspection tour and months of due diligence. He emphasized that the project, once completed, will bridge the gap in Nigeria’s steel demand, particularly for infrastructure projects like the Trans-Saharan and Nigeria-Morocco Gas Pipelines which require over 20,000 kilometers of pipelines.

Well in his conclusion, he called for a localized, integrated approach that would yield sustainable investment returns and strengthen the industrial chain between both countries. He thanked all stakeholders for their commitment and expressed hope that everyone would reconvene in Delta State, Nigeria, for the groundbreaking ceremony in September 2025.