Nigeria Secures $1.3 Billion Alumina Refinery Deal with AFC to Boost Mining Sector
In a major stride for the country’s mining industry, the Federal Government of Nigeria has signed a $1.3 billion investment partnership with the Africa Finance Corporation (AFC) to develop a state-of-the-art alumina refinery and two strategic mining projects. The agreement, disclosed by the Minister of Solid Minerals Development, Dele Alake, aims to strengthen the nation’s solid minerals sector while attracting significant private capital.
The joint venture will fund the construction of a 1 million-tonne-per-annum alumina refinery, a nationwide geoscience mapping program, and a special investment vehicle to accelerate exploration and production. The project is designed to operate at 95% capacity for 20 years, with projected alumina output totaling 19 million tonnes over its lifespan. Minister Alake confirmed that all regulatory approvals have been fast-tracked to ensure timely project execution.
“This partnership represents a new phase in Nigeria’s mining reforms and industrial growth,” Alake said. “Our ministry has modernized regulations, strengthened the investment climate, and established a mineral licensing framework capable of attracting serious investors.” The minister emphasized that the refinery is expected to contribute $1.2 billion annually to GDP and generate over $25 billion for the economy over its lifecycle, including approximately $8 billion in foreign exchange earnings.
The agreement was formalized by Hajiya Fatima Shinkafi, Executive Secretary of the Solid Minerals Development Fund, representing the government, and Franklin Edochie, AFC Deputy Director and Head of Metals and Mining, representing the corporation. Beyond the refinery, the partnership includes a national geoscience mapping exercise to provide reliable mineral data and a strategic investment vehicle to expedite exploration and development across key mineral leases.
Nigeria has been actively diversifying its economy away from oil, with recent initiatives including high-purity gold refining plants in Lagos, additional gold refineries at various development stages, and a $600 million lithium processing facility in Nasarawa State. Experts say the alumina refinery deal positions Nigeria as a major player in Africa’s mining sector while creating long-term industrial growth and employment opportunities.
source: nairametrics