The industrial park is expected to anchor multiple downstream industries, supported by new gas processing plants, pipelines, power infrastructure and export facilities, much of which is being delivered by Chinese engineering and construction firms under the BRI framework.
Nedopil notes that Nigeria’s GRIP-related contracts alone accounted for roughly $20 billion of China’s 2025 construction activity in Africa, making the country the continent’s largest BRI construction recipient and a strategic hub for China’s long-term energy engagement.
The scale of the deal places Nigeria at the centre of China’s recalibrated Africa strategy, which is shifting away from smaller, dispersed projects toward fewer, capital-intensive investments tied to energy security and long-term industrial value.
Terror challenges mar early development
Despite its strong fundamentals, GRIP’s early development was stalled by serious security challenges.
Long-standing tensions between the Ijaw and Itsekiri communities resurfaced, leading to violent rivalries and the emergence of armed groups around the project site in 2018.
During the administration of former President Goodluck Jonathan, threats and alleged financial demands of about $30 million reportedly forced authorities to delay the project’s groundbreaking, severely undermining investor confidence.
As a result, Ogidigben fell dormant for years, becoming a cautionary example of how insecurity in the Niger Delta can derail large-scale energy investments, despite their national economic importance.
Why GRIP matters for Nigeria and China
For Nigeria, GRIP represents a critical pillar of its long-term plan to reduce dependence on crude oil exports, curb gas flaring and build a competitive gas-driven manufacturing base. The project is expected to generate thousands of jobs, stimulate industrial growth in the Niger Delta and boost export revenues once operational.
For China, backing GRIP strengthens access to a major gas-producing economy while reinforcing its economic footprint in a region where competition with Western and Gulf partners is intensifying. It also reflects Beijing’s growing preference for projects with clear revenue potential rather than sovereign-funded public works.
However, the scale of Chinese involvement is likely to revive debates around debt sustainability, transparency and local content.
Nigerian authorities face pressure to ensure the GRIP investment delivers long-term economic value, technology transfer and inclusive growth, rather than adding to fiscal strain.
If successfully executed, GRIP could redefine Nigeria’s industrial landscape and stand as one of the most consequential Belt and Road projects on the African continent.
