FG Seeks Chinese Capital To Accelerate Power Projects, Industrial Investment

• Nigeria is seeking Chinese capital and technical partnerships to accelerate Presidential Power Initiative projects and expand investment across the electricity value chain.

• The Federal Government wants Chinese firms to move beyond engineering contracts and co-invest in generation, transmission, hydropower and related industrial projects.

• The power ministry is also targeting electricity-intensive sectors including steel, automotive manufacturing, data centres, cold-chain logistics and sugar processing.

September 11, () – The Federal Government is seeking stronger investment partnerships with Chinese power engineering companies and financial institutions to accelerate electricity projects and mobilise capital across Nigeria’s power sector.

The Minister of Power, Joseph Tegbe, disclosed this during engagements with Chinese companies in Beijing as part of an ongoing Nigeria-China power sector mission.

The discussions focused on converting existing partnerships into bankable projects, financed investments and completed infrastructure, particularly under the Presidential Power Initiative (PPI).

FG Seeks Co-Investment Beyond EPC Contracts

At meetings with Sinomach Group and China Machinery Engineering Corporation (CMEC), two companies involved in Nigeria’s generation and transmission programmes, Tegbe sought firm completion schedules for ongoing PPI projects.

He also proposed a broader investment model that would move Chinese participation beyond conventional engineering, procurement and construction contracts.

Under the proposed arrangement, Chinese companies would co-invest in generation, transmission, hydropower and related industrial projects, providing capital, technology and technical expertise.

The minister said building on CMEC’s existing operations in Nigeria could support faster project delivery, increase electricity wheeling capacity and facilitate blended financing structures.

Tegbe also met with China National Electric Engineering Corporation (CNEEC) to advance EPC cooperation on Nigeria’s transmission network.

The transmission system remains a major constraint on electricity supply, with network limitations contributing to load-shedding and restricting the amount of power that can be delivered to homes and businesses.

The Nigerian delegation also witnessed a factory acceptance test for high-voltage cables and other transmission materials at Hengfei Cable’s Changsha Industrial Park.

The test is designed to verify that equipment intended for Nigerian transmission projects meets required technical standards before shipment.

Power Investment Linked To Industrial Growth

Beyond electricity infrastructure, the minister invited Chinese companies to invest in sectors that could benefit from improved and more reliable power supply.

The targeted sectors include steel, automotive manufacturing, digital infrastructure and data centres, cold-chain logistics and sugar processing.

Tegbe proposed a structured Nigeria-China industrial cooperation platform to identify, assess and develop bankable projects aligned with the country’s industrialisation priorities.

The proposed platform would link additional electricity generation and transmission capacity with industrial demand, potentially improving the commercial viability of power projects while supporting manufacturing and job creation.

The approach reflects the government’s broader strategy of linking power-sector investment with productive economic activity rather than treating electricity infrastructure as a standalone investment.

According to the Ministry of Power, stronger partnerships with Chinese companies and financial institutions could help mobilise the capital required to expand generation and transmission infrastructure while improving system reliability.

The engagements come as Nigeria continues efforts to address long-standing electricity supply constraints and attract private capital into the power sector.

By seeking Chinese partners as both contractors and potential investors, the Federal Government is looking to accelerate infrastructure delivery while creating new financing models for electricity projects and power-intensive industries.