Nigeria is negotiating with Chinese investors to secure up to US$5.7 billion in strategic funding for energy, mining, and industrial manufacturing, the federal finance ministry said, as African governments increasingly pursue foreign partnerships to boost economic growth.
Nigeria is negotiating with Chinese investors to secure up to US$5.7 billion in strategic funding for energy, mining, and industrial manufacturing, the federal finance ministry said on Monday, as African governments increasingly pursue foreign partnerships to boost economic growth. received a high-level delegation from China’s GCL Group in Abuja, led by Orji Uzor Kalu. According to a ministry statement, the proposals include large-scale energy generation, local mineral processing, and new factories aimed at creating jobs, expanding exports, and increasing domestic value addition.
“The engagement forms part of broader efforts to expand productive capacity and reposition the economy through targeted foreign direct investments,” the ministry said, adding that the talks were aligned with ongoing reforms under President Bola Ahmed Tinubu’s administration. Officials said the discussions reflect rising investor confidence in Nigeria’s economic direction and the government’s strategy to transition from raw exports to domestic production.
Lagos, Nigeria, West Africa
Across East Africa, Uganda has moved to secure a strategic stake in Kenya’s critical energy infrastructure. The East African nation formalized its participation in the Kenya Pipeline Company (KPC) initial public offering (IPO) last week, acquiring a shareholding through the Uganda National Oil Company (UNOC). The deal grants Uganda the right to appoint at least two directors to KPC’s board, provided it maintains a minimum 20 percent stake, giving the landlocked country a formal say in a key regional supply chain.
“In Nairobi, I signed on behalf of the Ugandan government to formalize our participation in the IPO of KPC,” Energy Minister Ruth Nankabirwa Ssentamu said, noting the investment will reinforce fuel supply reliability and Uganda’s strategic position in the regional petroleum sector. The KPC IPO, originally due to close on February 19, was extended to February 24 to allow additional participation from retail and institutional investors.
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In West Africa, Sierra Leone is preparing a complex financial manoeuvre using its International Monetary Fund Special Drawing Rights (SDRs) to cover a $60 million financing gap, aiming to avoid deeper domestic borrowing. The operation, described in the IMF’s latest country report, involves retroceding SDR assets to the Ministry of Finance to receive credit in local currency, while the claims remain on the balance sheet as long-term external debt.
“The US$60 million shortfall due to lower-than-expected DPO grants in 2025 will be offset through SDR retrocession,” the IMF report said. The government is also upgrading its debt management framework, including medium-term strategy refreshes, investor relations desks, and a pivot toward auction-based Treasury bond issuance.
Meanwhile, cross-border investments continue to reshape regional banking. South Africa’s Nedbank Group has received approval from Kenya’s Capital Markets Authority to acquire a controlling 66 percent stake in NCBA Group, bypassing a mandatory offer for the remaining shares. Shareholders representing 77 percent of NCBA’s issued shares have committed to the deal, one of East Africa’s largest cross-border banking transactions, valued at around 109.9 billion Kenyan shillings (US$13.9 billion).
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“The CMA exemption allows Nedbank to pursue a partial acquisition while maintaining NCBA’s Nairobi Securities Exchange listing and domestic public ownership,” the bank said, with a consideration package comprising 80 percent Nedbank shares and 20 percent cash. The transaction is subject to regulatory approvals in Kenya and other jurisdictions and is expected to close within six to nine months.
African governments are increasingly turning to multilateral lenders, strategic investors, and regional partnerships to balance growth, fiscal sustainability, and infrastructure development. Analysts say targeted investments in energy, industrial capacity, and finance are crucial to diversify economies and improve resilience amid global uncertainty.
Nigeria is in advanced talks to secure up to $5.7 billion in strategic investments from China, targeting critical sectors such as power, mining, and industrial manufacturing. The initiative is part of the federal government’s broader economic reform agenda, which aims to transition the country from raw commodity exports to value-added domestic production.
The discussions follow a meeting in Abuja between Finance Minister and Coordinating Minister for the Economy, Olawale Edun, and a high-level delegation from China’s GCL Group, led by Orji Uzor Kalu. Proposed projects are expected to include large-scale energy generation, local mineral processing, and the establishment of new factories to create jobs, enhance exports, and boost industrial capacity.
Officials said the talks are backed by ongoing reforms under President Bola Ahmed Tinubu’s administration and reflect growing investor confidence in Nigeria’s economic direction. While detailed project specifics have not been disclosed, the engagement aligns with national objectives to strengthen energy security, promote industrialisation, and support sustainable long-term growth.
The negotiations form part of a wider strategy to attract targeted foreign direct investment to reposition Nigeria’s economy, leveraging partnerships with international firms to accelerate productive capacity and infrastructure development.
