During 2025, Nigeria emerged as the largest single beneficiary of China’s Belt & Road Initiative (BRI). The Ogidigben Gas Revolution Industrial Park (GRIP) in the Delta State has an estimated construction commitment of USD 24.6 billion. This marks the biggest China-backed infrastructure deals in Africa.
Nigeria became the largest beneficiary of China’s Belt & Road Initiative (BRI) in 2025. This is due to a USD 24.6 billion commitment.
Harnessing Nigeria’s vast natural gas reserves for high-value products is GRIP’s aim. This led to industrialisation and economic development.
This initiative highlights China’s swift progress towards significant energy-related infrastructure projects in Africa. This falls into place with China’s strategic and commercial goals.
Mainly due to security issues in the Niger Delta region, the initial progress experienced challenges. This led to delays in development and also affected investor confidence.
GRIP is a flagship gas-based industrial project. Its design aims to transform Nigeria’s vast natural gas reserves into higher-value products. Petrochemicals, fertilisers, methanol, and refined fuels are those that are included in this.
We expect this industrial park to anchor multiple downstream industries. This supports the construction of new gas processing plants, pipelines, power infrastructure, and export facilities. Chinese engineering and construction firms under the BRI framework are delivering much of this.
This deal highlights a broader trend in Beijing’s BRI strategy. This increases focus on fewer but high-value projects. They are connected to energy and industrial infrastructure. These insights were shared by Christoph Nedopil Wang, China’s energy and finance expert at Griffith University.
Nigeria’s GRIP-related contracts alone accounted for roughly USD 20 billion of China’s 2025 African construction activity, as noted by Nedopil. As a result, this makes Nigeria the continent’s largest BRI construction recipient and a strategic hub for China’s long-term energy engagement.
Nigeria is at the centre of China’s recalibrated African strategy, as reflected in the size of this deal. It reflects a shift away from the previous policy of smaller & dispersed projects. The current trend in policy is towards fewer, capital-intensive investments. These are tied to energy security, besides long-term industrial value.
Nigeria offers China both commercial viability and strategic depth in West Africa due to Africa’s large gas reserves supported by a sizeable domestic demand.
Serious security challenges partially stalled GRIP’s early development. Despite its strong fundamentals, this situation persists.
Nigeria’s GRIP represents a critical pillar. In addition to curbing gas flaring, Nigeria is now reducing its previous dependence on crude oil exports.
Rivalries between the factions of the Ijaw and Itsekiri communities resurfaced due to long-standing tensions. The emergence of armed groups around the project site during 2018 was consequent on such rivalries.
Threats and alleged financial demands of about USD 30 million reportedly forced authorities to delay the project’s groundbreaking during the administration of former President Goodluck Jonathan. This severely undermined investor confidence.
Interest reflected by Saudi-linked investors in the project is reported to have been withdrawn. The influence of non-state actors, besides concerns in security were cited by them.
As a result, Ogidigben fell dormant for years. How insecurity in the Niger Delta can derail large-scale energy investments became a cautionary example. This is despite their national economic importance.
The long-term plan for reducing dependency on crude oil exports becomes a critical pillar to Nigeria, represented by GRIP. Building a competitive gas-driven manufacturing base is in curbing gas flaring. Generating employment for thousands is an expectation from this project. Boosting export revenues once operational is intended with the stimulation of growth in the Niger Delta.
Strengthening access to a major gas-producing economy would be China’s backing towards GRIP. In a region where competition with Western and Gulf partners is seen as intensifying, this reinforces its economic footprint. Projects that have clear revenue potential rather than sovereign-funded public works reflect China’s growing preference.
Reviving debates around debt sustainability would likely reflect the scale of Chinese involvement. Also, in transparency and local content.
Ensuring that the GRIP investment delivers long-term economic value would be the pressure faced by Nigerian authorities. Rather than adding to fiscal strain, the focus would be on technology transfer and inclusive growth.
