Abuja, Nigeria – The Federal Government has signed a $1.3 billion investment partnership with the Africa Finance Corporation to develop an alumina refinery and two other strategic mining projects aimed at boosting Nigeria’s solid minerals sector.
The deal positions the project as a major step toward increasing mining’s contribution to Gross Domestic Product and attracting large-scale private capital into the industry.
Okay News reports that under the pact, the government and AFC will jointly fund the construction of a one 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. Minister of Solid Minerals Development Dele Alake said the facility is designed for about 20 years at 95 percent utilisation, with total alumina output projected at 19 million tonnes over its lifecycle.
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. The alumina refinery project is valued at $1.3 billion and is projected to contribute $1.2 billion to GDP annually 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.
The agreement was formally executed by Hajiya Fatima Shinkafi, Executive Secretary of the Solid Minerals Development Fund, and Franklin Edochie, AFC Deputy Director and Head of Metals and Mining. Initial feasibility studies conducted by AFC and the Solid Minerals Development Fund confirmed the project’s commercial viability and competitiveness. The proposed investment vehicle will drive rapid exploration, development, and eventual production across selected mineral leases following successful exploration campaigns.
This alumina refinery investment represents Nigeria’s largest private mining commitment and a significant boost to industrial processing capacity. In January, the government commenced operations at a high-purity gold refining plant in Lagos and announced progress on three additional gold refineries and a $600 million lithium processing plant in Nasarawa State. Sustained mining investment will be critical to diversifying Nigeria’s economy away from oil dependence.
