The Federal Government has signed a $1.3 billion investment partnership with the Africa Finance Corporation (AFC) to develop an alumina refinery and two other strategic mining projects aimed at boosting Nigeria’s solid minerals sector.
The agreement was disclosed in a statement issued by the Minister of Solid Minerals Development, Dele Alake, through his Special Assistant on Media, Segun Tomori, on Sunday in Abuja.
The deal is positioned as a major step toward increasing mining’s contribution to Gross Domestic Product and attracting large-scale private capital into the sector.
Under the pact, the government and AFC will jointly fund the construction of a 1 million-tonne-per-annum alumina refinery, a comprehensive national geoscience mapping programme, and the creation of a special investment vehicle to drive exploration and production.
What the Minister is saying
The minister said the partnership signals a new phase in Nigeria’s mining reforms and industrial expansion strategy.
- “The facility is designed for about 20 years at 95 per cent utilisation, with total alumina output projected at 19 million tonnes,” Alake said.
- “I have granted all necessary approvals to fast-track the AFC–SMDF investments.”
- “I have directed relevant agencies to ensure seamless processing and grant of all permits, titles and regulatory clearances for timely execution.”
Alake noted that reforms undertaken by the ministry have strengthened the investment climate, modernised regulations and established a mineral licensing regime capable of attracting serious private capital into the sector.
Get up to speed
Nigeria has intensified efforts in recent years to diversify its economy away from oil by developing its solid minerals industry.
The Ministry of Solid Minerals Development has outlined a seven-point agenda aimed at increasing sector transparency, improving geological data, and attracting strategic investors.
- The alumina refinery project is valued at $1.3 billion and will process one million tonnes of bauxite annually.
- It is projected to contribute $1.2 billion to GDP each year once operational.
- Over its lifecycle, the project is expected to generate more than $25 billion for the economy and about $8 billion in foreign exchange earnings.
- Initial feasibility studies conducted by AFC and the Solid Minerals Development Fund confirmed the project’s commercial viability and competitiveness.
The refinery is designed to operate for approximately 20 years at 95 per cent capacity utilisation, positioning it as a long-term anchor investment within Nigeria’s mineral value chain.
More Insights
The agreement was formally executed by key officials from both parties, underscoring institutional backing for the projects.
- Hajiya Fatima Shinkafi, Executive Secretary of the Solid Minerals Development Fund, signed on behalf of the government.
- Franklin Edochie, AFC Deputy Director and Head of Metals and Mining, signed for the corporation.
- The partnership also includes a nationwide geoscience mapping exercise to generate reliable mineral data.
- Both parties agreed to establish a joint strategic investment vehicle to accelerate exploration and development of identified assets.
The proposed investment vehicle will drive rapid exploration, development and eventual production across selected mineral leases following successful exploration campaigns.
What you should know
The alumina refinery is expected to be Nigeria’s largest private mining investment and a significant boost to the country’s industrial processing capacity.
In January, the Federal Government said it had commenced operations at a high-purity gold refining plant in Lagos.
The federal government also announced progress on three additional gold refineries at different stages of development across the country and a $600 million lithium processing plant in Nasarawa State that is ready for commissioning.
