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 nations have strengthened cooperation with China in the wake of U.S. tariffs, pushing China’s total overseas direct investments in green technology beyond $180 billion since 2023.
Chinese firms dominate 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. “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,” explains Caroline Wang, the report’s author and CEF China engagement lead.
This development offers emerging economies, including Nigeria, an opportunity to reduce 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 directed to Asia, the Middle East, Africa, and Latin America. Southeast Asia remains the top destination for Chinese cleantech manufacturing investments, although U.S. tariffs have led to fewer new solar‑manufacturing projects 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 examples include an $8.28 billion green‑hydrogen project announced by solar firm Longi Green in Nigeria and a $6 billion battery factory under construction in Indonesia. Emerging economies are also motivated by the desire to participate in the technological revolution and avoid missing out on innovation opportunities. “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,” Wang adds.
With China’s significant investment in clean technology, Nigeria and other beneficiary countries are poised to reap the benefits of growing demand for green technologies, alongside the potential for economic growth and development.
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