Nigeria and AFC sign $1.3B alumina refinery deal to boost mining, GDP, and foreign exchange earnings while modernising sector investments

The Nigerian Government and Africa Finance Corporation (AFC) have entered a landmark investment partnership to fund three strategic projects, including a $1.3-billion alumina refinery, officials confirmed on Sunday.

Also read: Nigerian Government Commences February Salary Payment

Nigeria’s Minister of Solid Minerals Development, Dele Alake, described the agreement as transformative for the mining sector and a major boost to the nation’s GDP.

The pact was signed at an event in Abuja by Hajiya Fatima Shinkafi, Executive Secretary of the Solid Minerals Development Fund, and Franklin Edochie, AFC Deputy Director and Head of Metals and Mining.

The alumina refinery is designed to process one million tonnes of bauxite annually, with an expected 20-year lifespan at 95 per cent utilisation, producing 19 million tonnes of alumina over its operational cycle.

The facility is projected to contribute $1.2 billion annually to Nigeria’s GDP and generate over $25 billion across its lifecycle, including $8 billion in foreign exchange earnings.

“The refinery represents Nigeria’s largest private mining investment and a landmark foreign direct investment,” Alake said, highlighting the alignment with the ministry’s seven-point development agenda.

The partnership also encompasses a nationwide geoscience mapping exercise and the creation of a joint investment vehicle to accelerate the development of mineral exploration assets.

This vehicle is intended to de-risk exploration, fast-track development, and enhance production efficiency across selected mineral leases.

Alake noted that reforms in the sector, including modernised regulations and a world-class licensing regime, had attracted serious private capital.

He directed relevant agencies to ensure the timely grant of all permits, titles, and regulatory clearances necessary for project execution.

Also read: Nigerian Government Commences February Salary Payment

Initial feasibility studies conducted by AFC and the Solid Minerals Development Fund confirmed the project’s commercial viability and competitiveness, signalling a significant step toward unlocking Nigeria’s mineral potential and expanding reliable mineral data across the country.