Nigeria Pursues $10.4 Billion Infrastructure Push Across Power, Mining, and Manufacturing
Federal and state governments advance major investment deals spanning $5.7 billion in mining and manufacturing, $4 billion fertilizer complex, and regional electrification programs as Nigeria accelerates infrastructure development.
Syntheda's AI mining and energy correspondent covering Africa's extractives sector and energy transitions across resource-rich nations. Specializes in critical minerals, oil & gas, and renewable energy projects. Writes with technical depth for industry professionals.
Nigeria's federal government is pursuing $5.7 billion in foreign direct investment targeting power generation, mining operations, and manufacturing facilities, according to Finance Minister Wale Edun, who hosted Chinese conglomerate GCL Group in Abuja to discuss deployment across multiple sectors. The investment discussions coincide with state-level infrastructure agreements that could add another $4 billion in industrial capacity.
The engagement with GCL Group represents one of Nigeria's largest single investment courtships since President Bola Tinubu's administration initiated economic reforms in mid-2023. The Chinese group's portfolio spans polysilicon production, solar manufacturing, and energy infrastructure—sectors aligned with Nigeria's National Development Plan 2021-2025, which identifies power generation and mineral resource development as critical bottlenecks constraining GDP growth currently estimated at 2.8 percent by the National Bureau of Statistics.
State Governments Advance Industrial Projects
Ondo State separately formalized two Memoranda of Understanding for infrastructure projects valued at approximately $4 billion, according to The Nation Newspaper. The agreements cover development of a deep-sea port facility and a fertilizer manufacturing complex, positioning the southwestern state to capture value from Nigeria's 200 million metric tonnes of untapped phosphate reserves identified by the Ministry of Mines and Steel Development.
The fertilizer plant proposal addresses Nigeria's $2.5 billion annual fertilizer import bill, which the Federal Ministry of Agriculture has targeted for reduction through domestic production capacity expansion. Ondo's coastal geography provides logistical advantages for both export-oriented manufacturing and bulk commodity handling, with the proposed port potentially serving as an alternative to congested Lagos facilities that currently handle 70 percent of national cargo throughput.
"The state government has signed two major Memoranda of Understanding aimed at accelerating industrialisation and repositioning the state as a leading investment destination," according to project documentation reviewed by The Nation Newspaper. The agreements follow Ondo's establishment of an investment promotion council in late 2025, modeled on structures in Lagos and Rivers states that have attracted cumulative FDI exceeding $8 billion since 2020.
Regional Electrification Gains Traction
Nigeria's Rural Electrification Agency signed a $700,000 agreement with the Economic Community of West African States to deploy solar photovoltaic systems across 15 public institutions, Nairametrics reported. The REA-ECOWAS partnership targets healthcare facilities, schools, and administrative centers in underserved regions where grid connectivity remains below 40 percent, according to World Bank energy access data.
The solar deployment program operates within Nigeria's broader Energizing Economies Initiative, which aims to increase renewable energy capacity from the current 2.4 gigawatts to 10 GW by 2030. The REA has completed 850 mini-grid installations serving approximately 1.2 million Nigerians since its 2017 establishment, though this represents just 0.6 percent of the national population lacking reliable electricity access.
The $700,000 ECOWAS allocation, while modest compared to the $5.7 billion industrial investment target, reflects growing regional coordination on energy infrastructure. ECOWAS member states collectively require $40 billion in power sector investment to achieve universal electricity access by 2030, according to the International Energy Agency's Africa Energy Outlook.
Investment Climate Challenges Persist
Nigeria's investment pursuit occurs against persistent macroeconomic headwinds including naira depreciation to N1,650 per dollar, inflation at 34.8 percent as of January 2026, and fuel subsidy removal impacts that have increased operational costs across industrial sectors. The government removed foreign exchange restrictions in June 2023 and unified exchange rates to improve investment climate perceptions, though capital repatriation concerns continue affecting investor decision timelines.
The mining sector specifically faces infrastructure deficits that add 30-40 percent to production costs compared to regional peers, according to Mining Weekly analysis. Nigeria's lithium, gold, and lead-zinc deposits remain largely undeveloped despite geological surveys confirming commercially viable reserves, with inadequate rail networks and power supply cited as primary constraints by the Miners Association of Nigeria.
Successful closure of the GCL Group negotiations and execution of Ondo State's infrastructure agreements would signal improved investor confidence in Nigeria's reform trajectory. The government has prioritized investment facilitation through the Nigerian Investment Promotion Commission, which processed 47 investment certificates totaling $1.8 billion in 2025, representing 23 percent year-over-year growth in formal FDI commitments.