In a significant move to strengthen Sino-Nigerian industrial cooperation, Nigeria’s indigenous firm, Chart & Capstone Integrated Ltd, has signed a landmark financial and technical partnership agreement with Chinese engineering conglomerate, Sinomach Heavy Equipment Group Co. Ltd (Sinomach-HE).
The agreement was formalized at Sinomach’s headquarters in Deyang, Sichuan Province, marking the launch of a transformative Iron-to-Steel industrialization project aimed at substantially increasing Nigeria’s domestic steel production capacity.
Speaking at the signing ceremony, Chief Immanuel Abel Edijala, Chairman and CEO of Chart & Capstone, expressed appreciation for the warm reception accorded to the Nigerian delegation.
He acknowledged the critical support of Nigerian government representatives, notably the Acting Consul General to China, Dr. Ilesanmi Abiodun Bakare, and the strategic guidance of the Nigeria-China Strategic Partnership (NCSP), led by Mr. Joseph Tegbe.
Chief Edijala traced the project’s trajectory back to an MOU signed in Nigeria in August 2024, which received further traction at the 2024 Forum on China-Africa Cooperation (FOCAC) in Beijing.
He commended Nigeria’s Minister of Solid Minerals Development, Mr. Dele Alake, for granting the initiative Pioneer Status and facilitating the issuance of an exploration license covering a 40-square-kilometer iron ore deposit in Kogi State.
He emphasized that the project is aligned with both countries’ strategic priorities, China’s push for outbound capital through the Belt and Road Initiative, and Nigeria’s ambition to diversify its economy through industrialization.
With a growing population of over 220 million and a GDP exceeding $362 billion, Nigeria presents a compelling investment destination for China’s industrial capital.
Under the agreement, Sinomach-HE will lead the design, construction, and equipment supply for both iron-making and steel-making plants in Kogi and Delta States.
The Delta State Government has already pledged land for the steel plant in Oleri, Udu Local Government Area, designated as a Special Economic Zone.
Preliminary activities are well underway. Chart & Capstone has commenced exploration at the licensed site and engaged WSGRI Engineering & Survey Inc., a subsidiary of Minmetals/MCC, to conduct core drilling and geological surveys in accordance with NI 43-101 international standards.
Additionally, Nigerian firm Plyse Professional Services is handling the financial feasibility studies.
The project is set to progress through clearly defined phases. The EPC (Engineering, Procurement, and Construction) contract signing and financial close are expected by December 2025, with construction slated to begin in Q1 2026.
Equipment delivery is anticipated by Q3 2026, and pre-commissioning is scheduled for mid-2027.
Chief Edijala commended Sinomach-HE’s proven technical expertise, noting a successful site inspection and extensive due diligence preceding the partnership.
He highlighted the project’s potential to significantly reduce Nigeria’s dependence on steel imports and support major infrastructure developments, particularly the Trans-Saharan and Nigeria-Morocco Gas Pipelines, which alone require over 20,000 kilometers of pipeline.
Concluding his remarks, Chief Edijala advocated for a localized and integrated approach to ensure long-term investment returns and strengthen industrial synergies between Nigeria and China.
He thanked all stakeholders for their unwavering commitment and expressed optimism that parties would reconvene for the official groundbreaking ceremony in Delta State in September 2025.
