Billionaire businessman, Orji Uzor Kalu, Chairman of Swiber Africa Group, on January 25 led the signing of a major New Energy Industry Framework Cooperation Agreement with China’s GCL Group in Dubai, in a move expected to strengthen Nigeria’s power sector and lithium battery value chain.
The agreement was signed by Kalu and the Chairman of GCL Group, Zhu Gongshan. It covers cooperation in new-generation power systems, lithium resource development, and industrial chain integration. The deal is being seen as a practical outcome of growing Nigeria–China economic ties and part of GCL’s wider international expansion drive under the Belt and Road Initiative.
Nigeria has for decades struggled with power shortages and a weak electricity grid, challenges that have slowed industrial growth and affected daily life. Under the new partnership, GCL is expected to bring its experience from over 20 years of oil, gas, and renewable energy projects in African countries such as Ethiopia and Djibouti to help address Nigeria’s energy needs.
A key aspect of the agreement is the introduction of advanced and intelligent power management solutions, including a virtual power plant system that allows for fast and accurate control of electricity supply and demand. The projects are aligned with Nigeria’s Presidential Power Initiative, with plans for about 3 gigawatts of gas-fired power plants and 4 gigawatts of wind and solar energy projects. Hydropower, coal-fired stations, and major grid upgrade works are also part of the plan to improve electricity supply across the country.
The agreement also places strong emphasis on lithium development. Although Nigeria is known to have large lithium deposits, the sector has largely been limited to raw extraction. The new partnership aims to change this by supporting local processing and value addition.
As part of this effort, the two sides plan to develop a lithium carbonate smelting facility in Abia State, creating a full value chain from mining to processing and export. This is expected to support Nigeria’s industrialisation goals and create new economic opportunities.
