Nigeria's aluminium alloy exports reach N682bn in 2024, with Japan & China leading the charge

Nigeria exported aluminium alloy worth N682 billion (441.45 million USD). between January and September 2024, according to an analysis of the Foreign Trade Statistics report from the National Bureau of Statistics. Labelled as unwrought aluminium alloys, the exports comprised ingots, blocks, billets, and slabs.

Image Source - Pixaby

Quarterly breakdown

A quarterly breakdown reveals that –

• N84 billion (54.69 million USD) was exported in the first quarter (Q1)
• N480 billion (312.53 million USD) in the second quarter (Q2)
• N116 billion (75.54 million USD) in the third quarter (Q3)

Japan emerged as the largest importer, accounting for N218.3 billion (142.13 million USD of the exports, followed by China with N43.5 billion. Nigeria's thriving aluminium export industry persists despite the prolonged inactivity of the country's only smelting plant, the Aluminium Smelter Company of Nigeria (ALSCON), located in Ikot Abasi, Akwa Ibom State. ALSCON was launched in 1997 and ceased operations in 2000.

Economic feasibility concerns hit ALSCON

In 2007, United Company RUSAL (UC RUSAL) acquired an 85 per cent stake in the facility, with the Nigerian government retaining the remaining shares. RUSAL undertook modernisation efforts, equipping the plant with an annual production capacity of 193,000 tonnes of aluminium. However, operations were suspended in March 2013 due to unreliable gas supply, rendering production economically unfeasible.

The facility's revival has been further hindered by an ongoing ownership dispute involving Bancorp Financial Investment Group (BFIG), an American company disqualified during the privatisation bidding process. Despite both UC RUSAL and Bancorp Financial Investment Group (BFIG) securing court rulings in their favour over ALSCON's ownership, recent efforts have been made to revive the facility.

Efforts to restart ALSCON

Last year, the federal government announced plans to restore the plant to full operation, emphasising its potential to contribute to the nation's economy significantly. Describing the revival as a critical step to boost investor confidence, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, expressed optimism about the plant's imminent rehabilitation. This was highlighted in a statement issued in Abuja by his spokesperson, Louis Ibah.

According to the statement, Ekpo made these remarks while leading a Nigerian delegation, including top officials from BFIGroup of America—the preferred bidder and core investor in the privatisation of ALSCON—on a visit to the headquarters of China National Chemical Engineering Corporation (CNCEC) in Beijing.

UC RUSAL has also announced plans to invest $500 million in ALSCON. During a visit to President Bola Tinubu at the State House in July, ALSCON Chairman Alexey Arnautov highlighted that this investment, slated for a defined timeframe, would significantly boost the company's performance.

In response, President Tinubu expressed the government's commitment to reviving the smelter in Ikot Abasi, underscoring its critical role in the nation's development, according to a statement released after the meeting.