The federal government has entered a $1.3 billion investment partnership with the Africa Finance Corporation to develop a large-scale alumina refinery and strengthen Nigeria’s mining sector.
The agreement, signed through the Solid Minerals Development Fund, covers three key initiatives: construction of the alumina refinery, a nationwide geoscience mapping programme, and the creation of a joint investment vehicle to accelerate mineral exploration and development.
Alumina, which is refined from bauxite, is a critical raw material in aluminium production. According to the government, the proposed refinery will process about one million tonnes of bauxite annually using modern Bayer-process technology.
The facility is expected to run for roughly 20 years at high capacity and produce an estimated 19 million tonnes of alumina over its lifetime. Power and steam for operations will be supplied through an on-site gas-fired cogeneration plant.
Speaking at the signing ceremony, Dele Alake, minister of solid minerals development, described the agreement as a major step toward repositioning mining as a significant contributor to Nigeria’s economy. He said recent regulatory reforms and improvements in mineral licensing are already drawing private capital into the sector.
Alake added that all required government approvals have been granted to ensure the project moves quickly, directing agencies under the ministry to fast-track permits and regulatory clearances.
Executive Secretary of the SMDF, Fatima Shinkafi, said the transaction is the largest financing deal the fund has handled since it was established, noting that it reflects the agency’s growing capacity to support large-scale investments.
The ministry estimates that the refinery will contribute about $1.2 billion to Nigeria’s gross domestic product each year, generate up to $8 billion in foreign exchange earnings, and inject more than $25 billion into the economy over the project’s lifespan.
Beyond the refinery, the agreement also includes a comprehensive geoscience mapping exercise aimed at improving mineral data, reducing risks for investors, and unlocking new exploration opportunities. Both parties will also establish a joint strategic investment vehicle to develop promising exploration assets across the country.
The deal was signed on behalf of the government by Shinkafi, while Franklin Edochie, deputy director and head of metals and mining at AFC, represented the corporation. The ceremony was witnessed by Samaila Zubairu, president and chief executive officer of AFC.
