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Nigeria's 'power shortage' strikes, capital Abuja frequently plunges into darkness


03-15

Since June, Nigeria, a major African economy, has been experiencing a severe power shortage, plunging most areas, including the capital Abuja and the largest city Lagos, into darkness repeatedly. To maintain normal work and life, local residents have had to rely on generators. Nigeria's Minister of Power, Chinedu Nebo, described the power shortage as a "nightmare."

  Currently, Nigeria's total installed power generation capacity is about 6 gigawatts, which can only meet the electricity needs of 40 million people out of a total population of 160 million. Brazil and Pakistan have populations comparable to Nigeria's, but their installed power generation capacities are 24 and 5 times that of Nigeria, respectively. According to World Bank data, Nigeria experiences an average of 46 days of power outages per year, each lasting at least 6 hours.

  Last month, a transmission line failure in Bayelsa State, southern Nigeria, left most of the state without power for three weeks. It took the power department 12 days to restore power. Similar situations occurred in Kebbi State in the northwest, where some areas remain without power due to vandalism and recent heavy rains.

  In fact, Nigeria has abundant natural gas, coal, and other resources, with the potential to meet its domestic electricity needs, yet it suffers from a severe power shortage. The immediate cause is system failures due to frequent rainfall and vandalism, while the root cause lies in the country's weak power infrastructure and lack of a long-term plan for integrated energy and power infrastructure.

  Not long ago, Nigeria announced a power plan to reach 40 gigawatts of installed power generation capacity by 2020. In 2009, the Nigerian government proposed a plan called "Gas Master" aimed at increasing investment in pipeline infrastructure and natural gas power plants to meet electricity demand. However, with the deteriorating security situation in the Niger Delta region, attracting investment has become a challenge.

  Peter, chairman of the Trade Union Congress (TUC), said: "Clearly, we need more players to enter the power and energy sector. The frequent power outages are mainly due to poor management, lack of maintenance, funding shortages, corruption, and vandalism. If we want to be a member of the G20 by 2020, the government must address these issues promptly and effectively."

  In 2010, the Nigerian government attempted to use privatization to alleviate the power shortage. In May of that year, President Goodluck Jonathan launched a major reform initiative to privatize the power sector, aiming to break the monopoly of the state-owned Power Holding Company of Nigeria. By the end of 2012, the privatization process was largely complete. In April of this year, Nigeria sold 10 state-owned power plants and 5 power supply companies to private enterprises. In early June, the government announced a plan to privatize 10 natural gas power plants by mid-2014.

  Currently, this measure has alleviated the tight power supply situation in Nigeria to some extent, but lack of funds and insufficient routine maintenance continue to create great difficulties for the country's power supply. Chinedu Nebo also said that after the privatization of electricity, the budget had no maintenance reserve fund, making routine maintenance of infrastructure very difficult.

  However, international aid to Nigeria has not stopped.

  In March, the Nigerian Ministry of Power stated that the European Union and the German Agency for International Cooperation (GIZ) provided 15 million euros and 9 million euros respectively to the Nigerian government to assist in the construction of power plants and research in the power sector.

  On May 28, the groundbreaking ceremony for the Zungeru Hydropower Station, constructed by China Power Engineering Consulting Group and China Water and Power Consultants International Engineering Co., Ltd. ("CPECC-CWE Joint Venture"), was held in Niger State. The power station has a total installed capacity of 700 megawatts and an average annual power generation of 2.64 billion kilowatt-hours. The construction of the power station is of great significance to improving Nigeria's power shortage, meeting the needs of national economic development, and improving people's living standards. At the same time, the Zungeru Hydropower Station will also drive further development of hydropower projects in Nigeria.

  In addressing the "power shortage," Nigeria continues to face a series of challenges, including funding, technology, talent, management, infrastructure, and international cooperation. Currently, only a few foreign investors are willing to invest in the country's power sector, with most companies preferring to invest in the oil and gas industry. Experts say that only with sustained economic development in Nigeria can its power problems be fundamentally resolved. Reporter Zhang Qi

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Zhenghe Exhibition visited Nigerian automotive technology and other industry associations to promote cooperation on the 2025 Nigeria (Lagos) China Goods Expo.


From January 3rd to 6th, 2025, representatives of Zhenghe Exhibition's overseas staff successively visited the secretariat of the Nigerian Automotive Technicians Association (NATA), the Amalgamated Union of Automobile Motor Mechanics and Technicians of Nigeria (AUOMMATON), and the Motor Mechanics and Technicians Association of Nigeria (MOMTAN). This visit primarily focused on in-depth discussions and exchanges regarding cooperation for the 2025 Nigeria (Lagos) China Commodities Fair. During the meetings, representatives of Zhenghe Exhibition's overseas staff introduced the basic situation of the Nigeria (Lagos) China Commodities Fair to the heads of the business associations. The heads of the various business associations acknowledged the significant achievements made by the exhibition in recent years. During the discussions, the three industry association leaders provided detailed information about their respective associations. As leaders and promoters of associations related to the automotive industry in Nigeria, these three associations have a wide influence in Nigeria and even West Africa. Against the backdrop of continuously deepening and upgrading China-Africa cooperation, they expressed high expectations for actively promoting trade cooperation between Nigeria and China in the automotive industry. The heads of the associations also stated their willingness to work with Zhenghe International Exhibition to jointly promote the continuous development of the Nigeria (Lagos) China Commodities Fair, uniformly organize member units to participate in the exhibition, and conduct one-on-one matchmaking discussions with Chinese exhibitors. As Africa's second-largest economy and most populous country, Nigeria has a huge demand for automotive and auto parts products, largely relying on imports. In Nigeria, over 90% of Nigerians tend to choose 'tokunbo' (used cars), which makes the 'tokunbo' distribution business very profitable in Nigeria. With the Nigerian government relaxing age restrictions on imported used cars, the volume of used car imports will further increase. Consequently, the auto parts market, both upstream and downstream of Nigeria's used car industry chain, will also see more opportunities. After years of operation by Chinese automakers, Chinese cars have established considerable 'prestige' in Nigeria. At the same time, the scarcity of local car repair outlets and the high cost of spare parts in Nigeria also indicate immense potential for Chinese auto parts exports to the Nigerian market.

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Deep cultivation of fertile soil ensures abundant blossoms - The 2025 Nigeria Lagos China Commodities Fair embarks on a new journey!


Nigeria is an important trade partner and investment destination for China in Africa, and also China's largest contracted project market in Africa. In 2023, the new contract value for Chinese enterprises' contracted engineering business in Nigeria reached 10.45 billion USD, with a turnover of 3.98 billion USD. On September 3, 2024, China and Nigeria issued a joint statement announcing the establishment of a comprehensive strategic partnership, promoting the building of a high-level China-Nigeria community with a shared future, and explicitly strengthening cooperation in areas such as infrastructure construction. Chinese Products are Hot-selling in the Nigerian Market under the Framework of China-Africa Cooperation According to data from the General Administration of Customs, from January to July 2024, China's imports and exports with Africa totaled 1.19 trillion CNY, a year-on-year increase of 5.5%. 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In terms of fabrics, wax prints with unique craftsmanship and patterns, and brightly colored African jacquard fabrics are popular; for finished garments, shirts and sportswear with Chinese cultural elements or designs that align with local aesthetic preferences are highly sought after; regarding accessories, exquisite embroidery and unique buttons could also be among the featured products. 3. Auto Parts Products Nigeria is considered Africa's largest potential automotive market. In Nigeria, over 90% of Nigerians prefer "tokunbo" (used cars), making the "tokunbo" distribution business very profitable in Nigeria. With the Nigerian government relaxing age restrictions on imported used cars, the volume of used car imports will further increase. Therefore, the auto parts market, both upstream and downstream of Nigeria's used car industry chain, will also see more opportunities. 4. Wigs and Hair Products Eight out of every 10 Nigerian women wear wigs. Nigerian women have a particular preference for wigs and hair extensions, creating a substantial market for hair products of various sizes and prices. Furthermore, there is also significant demand for hair care products such as shampoos, relaxers, hair creams, and detangling brushes. 5. Building Materials, Hardware Accessories With the acceleration of urbanization and the continuous advancement of infrastructure construction in Africa, the African building materials and hardware market is showing vigorous development. 70% of hardware products in the African market rely on imports. The demand for hardware products is mainly concentrated in saw blades, steel pipes, and various types of mechanical hardware. From "Whether to Go" to "How to Go," Enterprises "Have a Soft Spot" for the African Market From surveying the Nigerian market in 2002 to bringing the Nigeria (Lagos) China Commodities Expo to the public's attention in 2007. In the blink of an eye, Zhenghe Exhibition has been organizing the Nigeria (Lagos) China Commodities Expo for over 17 years. Throughout the 53 years of China-Nigeria diplomatic relations, Zhenghe Exhibition has made every effort to actively assist in deepening the economic and trade relations between enterprises of both countries! Over these 17 years, we have organized thousands of enterprises from over 20 provinces and cities, including Hebei, Jilin, Liaoning, Shandong, Fujian, Zhejiang, Henan, Hubei, Hunan, Jiangsu, Anhui, Guangdong, Beijing, Shanghai, Tianjin, and Chongqing, to participate in the exhibition. Exhibits covered various fields such as agricultural machinery, vehicles and parts, construction machinery, hardware building materials, power equipment and new energy products, textiles and garments, beauty products, and daily necessities. 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At this critical period in the development of China-Africa relations, Zhenghe Exhibition will actively combine our "first-mover advantage" with "African endowments," act as a bridge, and facilitate more "Made in China" products entering and becoming popular in Africa.

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