The Federal Government has signed a $1.3 billion investment partnership with the Africa Finance Corporation (AFC) to develop a major alumina refinery and two additional strategic mining projects aimed at accelerating Nigeria’s solid minerals sector expansion.
The agreement was disclosed in Abuja by the Minister of Solid Minerals Development, Dele Alake, through his Special Assistant on Media, Segun Tomori.
The deal represents one of the largest single investments in Nigeria’s mining industry in recent years and is expected to significantly boost the sector’s contribution to Gross Domestic Product (GDP).
Details of the $1.3bn Investment Partnership
Under the agreement, the Federal Government and AFC will jointly fund:
1. A 1 million-tonne-per-annum alumina refinery
2. A nationwide geoscience mapping programme
3. A special purpose investment vehicle to drive mineral exploration and production
The alumina refinery alone is projected to process one million tonnes of bauxite annually and operate for approximately 20 years at 95 percent utilisation capacity.
Total alumina output over its lifecycle is estimated at 19 million tonnes.
What the Minister Said
According to Alake, the partnership signals a new phase in Nigeria’s mining reforms and industrialisation strategy.
“The facility is designed for about 20 years at 95 per cent utilisation, with total alumina output projected at 19 million tonnes.”
“I have granted all necessary approvals to fast-track the AFC–SMDF investments and directed relevant agencies to ensure seamless processing of permits and regulatory clearances.”
The Minister noted that recent reforms have modernised regulations, strengthened transparency, and improved Nigeria’s mineral licensing framework to attract serious private capital.
Economic Impact and Projections
The alumina refinery project is valued at $1.3 billion and is expected to:
1. Contribute approximately $1.2 billion annually to Nigeria’s GDP
2. Generate over $25 billion in economic value over its lifecycle
3. Deliver about $8 billion in foreign exchange earnings
Feasibility studies conducted by AFC and the Solid Minerals Development Fund confirmed the project’s commercial viability and long-term competitiveness.
Strategic Diversification Drive
Nigeria has intensified efforts to diversify its economy away from crude oil by strengthening the solid minerals sector.
The Ministry of Solid Minerals Development is currently implementing a seven-point reform agenda aimed at improving geological data availability, enhancing transparency, and attracting large-scale investors.
Earlier this year, the Federal Government commenced operations at a high-purity gold refining plant in Lagos and announced progress on additional gold refineries across the country, alongside a $600 million lithium processing plant in Nasarawa State.
The new AFC partnership is expected to position Nigeria as a major industrial minerals processing hub in Africa.
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