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... Chinese firm to provide 80% of proposed investment
Rivers State has advanced plans for a proposed $3.5 billion methanol and fertiliser plant in Bonny following the signing of a Memorandum of Understanding (MoU) between Best Option Chemical Limited and China National Chemical Engineering Group Corporation (CNCECC).
The proposed investment is expected to strengthen the state’s industrial and petrochemical sectors, with the Chinese engineering firm expected to finance 80 per cent of the project’s estimated cost.
Speaking at the MoU signing ceremony, the Director-General of the Rivers State Investment Promotion Agency (RSIPA), Chamberlain Peterside, said the agency had facilitated engagements between the investors, government ministries, prospective landowners and the host community.
Peterside explained that the process began with discussions on the investment proposal before three potential locations—Ahodaa, Onne and Bonny—were assessed.
He said the locations were evaluated based on their comparative advantages, particularly access to natural gas, a critical feedstock for methanol and fertiliser production.
According to him, Bonny emerged as the preferred site after further assessments and engagements by the project proponents.
The RSIPA chief said the agency subsequently facilitated discussions with landowners, families and the host community to identify suitable land for the proposed facility.
He added that further site inspections confirmed the location’s suitability in terms of size, accessibility and other relevant requirements.
Peterside said RSIPA also facilitated engagements with the state Ministry of Lands on land-related matters and supported the survey process.
The agency equally engaged the Ministry of Environment, which assisted with the Environmental Impact Assessment process.
He, however, clarified that the MoU represented an initial step towards the proposed investment and should not be interpreted as a final partnership agreement or a definitive investment decision.
He noted that additional agreements, regulatory approvals and other requirements must be completed before the project could proceed to construction.
Peterside assured the investors of the agency’s continued support in facilitating engagements and addressing challenges that might arise as the project progresses.
The Managing Director of Best Option Chemical Limited, Franklin Uchenna Okafor, disclosed that the proposed facility was valued at $3.5 billion, with CNCECC expected to provide 80 per cent of the investment.
Okafor said discussions on the project commenced on January 12, 2026, adding that the MoU followed engagements involving the project proponents, their Chinese partners and other stakeholders, including the Nigerian National Petroleum Company (NNPC).
He identified Bonny’s access to natural gas and proximity to the ocean as major factors behind its selection as the preferred location.
Okafor expressed confidence in CNCECC’s technical expertise and experience in executing engineering and industrial projects in Nigeria.
Also speaking, the Chief Representative of CNCEC International for Africa, Edward Li Guosong, said the Chinese firm’s role would cover the Engineering, Procurement and Construction (EPC) component of the proposed project.
Guosong commended RSIPA, the Rivers State Government and the host community for their support, expressing his company’s readiness to collaborate with local stakeholders towards the project’s eventual implementation.
He said the investment could create employment opportunities, strengthen host-community engagement and generate economic benefits for the state.
Guosong described CNCECC as an experienced player in the midstream and downstream oil and gas sectors, with involvement in petrochemical plants, ammonia production and other chemical manufacturing projects in Nigeria.
He added that the company was also interested in opportunities to utilise natural gas for electricity generation and explore other feedstocks for power production.
The Chinese representative said Rivers State’s oil and gas resources offered opportunities for investments in energy and petrochemical industries, expressing optimism about advancing the proposed facility as the necessary technical, financial and regulatory processes are completed.
