How a 12-day investment mission is seeking to turn Chinese capital and know-how into factories, jobs, technology, and a stronger African production base
Nigeria’s relationship with China has always been defined largely by trade and infrastructure. Chinese products have become a familiar presence in Nigerian markets, while Chinese companies have played significant roles in roads, railways, power, and other major infrastructure projects.
Dr Olayinka Fayomi, Founder, Chairperson and CEO of the Foreign Investment Network and a pioneer Director at the Nigerian Investment Promotion Commission believes the next chapter should be different.
Her proposition is that Nigeria should not simply buy from China. It should learn from China, build with China and increasingly produce for Africa.
That ambition shaped her 12-day investment mission to China from 1 to 14 August 2026. Working with Renewed Hope Global and other public and private-sector partners, the delegation held about 30 high-level meetings and signed 19 memoranda of understanding covering manufacturing, energy, artificial intelligence, technology, construction materials, mining and trade.
For Dr Fayomi, the mission was designed to move beyond diplomacy towards investment delivery.
“This was not a ceremonial visit,” she said. “It was a business mission focused on measurable economic outcomes for Nigeria.”
That distinction matters.
Africa attracted about US$70 billion in foreign direct investment in 2025, according to UN Trade and Development, placing the continent at its third-highest level since 1990. Yet investment remains concentrated in sectors such as energy, infrastructure and natural resources, with manufacturing continuing to account for a relatively small share.
The more important question, therefore, is not simply how much capital enters Africa, but what that capital leaves behind.
Does it create factories? Does it develop local suppliers? Does it train workers? Does it transfer technology? Does it help African companies become more competitive? And, ultimately, does it enable Africa to produce goods for its own expanding market and for global consumers?
Those questions sit at the centre of Fayomi’s investment agenda.
The US$100 million opportunity
Among the proposals emerging from the mission is a potential US$100 million investment involving Chinese coatings and building materials company 3TREES, also known as SKSHU Paint Co., Ltd.
Subject to further studies, approvals and final agreements, the proposed investment could support local production of paints, coatings, waterproofing products, flooring materials and adhesives.
The significance extends beyond the headline investment figure.
A manufacturing operation of this scale could create opportunities for Nigerian suppliers, engineers, contractors, distributors and small businesses while reducing dependence on imported finished products.
Fayomi’s ambition is to build a deeper ecosystem around such investments.
“The goal is not just export expansion into Nigeria, but the establishment of local manufacturing, development of Nigerian suppliers and distributors, training of technical personnel, and eventually positioning Nigeria as a production and export base for West Africa.” She said.
That proposition aligns with the broader direction of China-Africa economic cooperation. China’s Beijing Action Plan for 2025 to 2027 places emphasis on African manufacturing, local value chains, mineral processing, industrial parks, support for small businesses and skills development.
The opportunity for Nigeria is to translate those priorities into productive capacity on the ground.
From market to manufacturing hub
The argument becomes even more significant when viewed through Africa’s wider industrialisation challenge.
The African Development Bank has reported growth in Africa’s manufacturing value added, from US$285 billion in 2020 to US$351 billion in 2025. Yet the continent continues to account for less than 2 per cent of global manufacturing output and only a small share of global manufacturing exports.
Africa has the markets, population and natural resources. What remains insufficient is the industrial capacity to convert those advantages into competitive products and high-value jobs.
Fayomi believes Nigeria can play a central role.
“Nigeria should not remain only a market for finished goods but become a manufacturing, technology and distribution hub for Africa.”
The African Continental Free Trade Area strengthens that proposition. A factory established in Nigeria can potentially serve not only Nigerian consumers but markets across the continent, creating the foundation for regional value chains and larger economies of scale.
The objective is therefore bigger than attracting individual companies. It is about positioning Nigeria as a platform from which businesses can manufacture, distribute and export across Africa.
Power, technology and value creation
The China mission also extended beyond traditional manufacturing.
According to Fayomi, the agreements and discussions covered renewable energy, artificial intelligence, drones, gold processing and other technology-related opportunities.
For Nigerian manufacturers, energy remains fundamental. Factories cannot compete consistently without reliable and affordable electricity. Renewable energy, battery storage, local assembly and technical training could provide businesses with alternative ways to reduce energy costs while strengthening domestic capabilities.
Technology presents a similar opportunity.
Nigeria should not simply import AI systems, drones and digital services. It should develop the skills and industrial ecosystems required to build, maintain, adapt and eventually export them.
Mineral processing offers another route to greater value creation. Rather than exporting raw resources and importing finished products, greater domestic processing could allow Nigeria to capture more value, develop technical expertise and create industrial jobs around its natural resources.
This is the broader logic of industrial transformation: move progressively from extraction and consumption towards processing, manufacturing and export.
What China can teach Africa
Perhaps the most important lesson from the mission was not a single investment proposal, but an industrial model.
During visits to Shanghai and Chinese manufacturing centres, the delegation observed how factories operate within a wider ecosystem of infrastructure, ports, finance, research, skills, technology and supply chains.
“China’s key strength is its integrated industrial system,” Fayomi said.
That observation goes to the heart of Africa’s industrial challenge.
A factory cannot succeed in isolation. It needs dependable power, transport infrastructure, skilled workers, access to finance, reliable suppliers and markets large enough to support competitive production.
This is why the industrialisation debate must move beyond attracting individual factories. Africa needs connected industrial ecosystems.
The African Development Bank has similarly emphasised the importance of industrial corridors, infrastructure, skills development and regional production networks.
For Nigeria, the lesson is particularly relevant. Investment promotion must increasingly be accompanied by investment readiness: serviced industrial sites, predictable regulation, infrastructure, skilled labour and efficient processes that allow capital to move from agreement to production.
The real test begins now
The most important phase of the China mission begins after the delegation returns home.
The 19 MoUs must move from paper to implementation. That requires due diligence, feasibility studies, financing, land, permits, equipment, construction, technical partnerships and workforce development.
Fayomi says the next six months should focus on due diligence, site visits and technical meetings, with the strongest projects potentially moving into construction, local assembly and production within 12 to 24 months, subject to funding, approvals and other conditions.
Her definition of success is deliberately practical.
“Success will not be measured by signed documents but by operational factories, increased power supply, technology transfer, Nigerian enterprises created and sustainable employment.”
That may be the most important measure of all.
