Federal Government has inked a landmark $1.3 billion investment pact with the Africa Finance Corporation (AFC) to build a one-million-tonne-per-annum alumina refinery and advance two key mining initiatives, positioning Nigeria as a continental leader in solid minerals processing.
Disclosed by Minister of Solid Minerals Development, Dele Alake, via his Special Assistant on Media, Segun Tomori, the agreement marks one of the largest infusions into Nigeria’s mining industry, promising substantial GDP growth and economic diversification from oil dependency.
The partnership funds three core components: a state-of-the-art alumina refinery capable of processing one million tonnes of bauxite yearly; a comprehensive nationwide geoscience mapping programme; and a special purpose investment vehicle to accelerate mineral exploration and production.
The refinery, designed for 20 years at 95 per cent utilisation, will yield 19 million tonnes of alumina over its lifecycle, with feasibility studies by AFC and the Solid Minerals Development Fund affirming its commercial viability and global competitiveness.
Alake described the deal as a pivotal shift in Nigeria’s mining reforms and industrialisation drive. “The facility is designed for about 20 years at 95 per cent utilisation, with total alumina output projected at 19 million tonnes,” he stated. He added that he had granted all necessary approvals to expedite AFC-SMDF investments, directing agencies to streamline permits and clearances.
Recent regulatory overhauls, the minister noted, have modernised licensing, bolstered transparency, and drawn serious private capital, aligning with a seven-point agenda to enhance geological data and investor confidence.
Economic projections paint a transformative picture: the refinery alone could inject $1.2 billion annually into GDP, generate $25 billion in total value, and secure $8 billion in foreign exchange over its lifespan.
This initiative builds on momentum in the sector, including the launch of a high-purity gold refinery in Lagos, plans for additional gold facilities nationwide, and a $600 million lithium plant in Nasarawa State, underscoring Nigeria’s strategic pivot to solid minerals as an oil alternative.
Observers hail the AFC deal as a game-changer, potentially elevating the mining sector’s GDP share while creating jobs and positioning Nigeria as Africa’s industrial minerals hub.
The Ministry reaffirmed commitment to seamless execution, urging stakeholders to leverage the reforms for sustained growth
