Abuja, Nigeria – Nigeria has signed a $1.3 billion agreement to build an alumina refinery, marking the largest private mining investment in the country’s history, as the Federal Government pushes to diversify its economy beyond oil and gas. The facility will process one million tonnes of bauxite annually over a projected 20-year lifespan.
Okay News reports that the refinery is expected to contribute $1.2 billion to Gross Domestic Product each year, generate approximately $8 billion in foreign exchange earnings over its lifetime, and create $25 billion in total economic value. The project forms part of broader efforts to develop Nigeria’s solid minerals sector and capture more value from mineral processing domestically.
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The investment follows similar developments in the mining sector this year, including the commencement of operations at a high-purity gold refining plant in Lagos and a $600 million lithium processing facility in Nasarawa State ready for commissioning. Three additional gold refineries are currently at various stages of development across the country.
These projects signal a strategic shift toward processing minerals such as gold, lithium, and bauxite locally rather than exporting raw materials for processing abroad. This mining investment reflects the government’s focus on economic diversification and value addition in the solid minerals sector.
