Nigeria is among the countries benefiting from China’s $80 billion investment in clean technology overseas, according to a report by Australian research group Climate Energy Finance. The investment, made over the past year, aims to absorb a supply glut in China’s clean tech industry. The report, released on Sunday, notes that many countries have strengthened their cooperation with China in the wake of US tariffs, resulting in China’s total overseas direct investments in green technology exceeding $180 billion since 2023.
Chinese firms dominate the supply chains for clean technologies such as critical minerals processing, solar panels, and batteries. By investing in clean energy infrastructure abroad, these companies create markets for their products. According to Caroline Wang, report author and CEF China engagement lead, “China has a supply glut when it comes to green technology, like solar panels and batteries, because of a structural supply-demand mismatch, so they need overseas markets to absorb their products.”
This development presents opportunities for emerging economies, including Nigeria, to reduce their dependence on imported fossil fuels. Research from the Net Zero Industrial Policy Lab at Johns Hopkins University shows that 75% of China’s low-carbon foreign direct investment is in Asia, the Middle East, Africa, and Latin America. Southeast Asia remains the top destination for Chinese cleantech manufacturing investments, although US tariffs have led to fewer new solar manufacturing investments in the region.
The Middle East and North Africa are the fastest-growing investment destinations, driven by national strategies to diversify away from oil. Chinese firms are increasingly favoring large-scale projects that integrate upstream and downstream supply chains. Notable projects include an $8.28 billion green hydrogen project announced by solar firm Longi Green in Nigeria and a $6 billion battery factory being built in Indonesia.
Emerging economies are also motivated by the desire to participate in the technological revolution and avoid missing out on innovation opportunities. As Wang notes, “China is leading the world in these technologies, in the innovation, and if you don’t get into the supply chain quickly, there’s a risk you miss out on innovation opportunities.” With China’s significant investment in clean technology, Nigeria and other beneficiary countries are poised to benefit from the growing demand for green technologies and the potential for economic growth and development.