The Federal Government of Nigeria has signed a landmark partnership with the African Finance Corporation (AFC) to develop a $1.3 billion alumina refinery and launch major initiatives aimed at transforming the country’s mining industry.
The agreement, signed in Abuja, also covers a nationwide geoscience mapping project and the creation of a special mining investment vehicle designed to unlock Nigeria’s vast mineral resources.
Nigeria’s Minister of Solid Minerals Development, Dele Alake, described the partnership as a major step toward diversifying the economy away from crude oil while increasing the mining sector’s contribution to national GDP.
$1.3bn Alumina Refinery to Process Bauxite
At the center of the deal is the construction of a modern alumina refinery capable of processing about one million tonnes of bauxite annually.
The refinery will operate using the Bayer process, a globally recognised technology for refining bauxite into alumina.
To ensure stable operations, the facility will include an on-site gas-fired cogeneration plant that will generate both electricity and steam required for refining.
Officials say the refinery is expected to run for approximately 20 years at 95% capacity, producing nearly 19 million tonnes of alumina during its lifetime.
Major Economic Impact Expected
Government projections suggest the project could deliver significant economic benefits to Nigeria, including:
$1.2 billion annual contribution to GDP
Over $25 billion in total economic value across the project lifecycle
$8 billion in foreign exchange earnings
Thousands of new jobs across mining, processing, and logistics sectors
According to Fatima Shinkafi, Executive Secretary of the Solid Minerals Development Fund (SMDF), the project represents the largest investment ever facilitated by the fund.
Nationwide Mineral Mapping Initiative
Beyond the refinery, the partnership will fund a comprehensive geoscience mapping programme across Nigeria.
The initiative aims to provide reliable geological data that will help attract global investors to the country’s mineral resources.
Experts say the absence of credible geological information has historically slowed large-scale investment in Nigeria’s mining industry.
Unlocking Nigeria’s Mineral Wealth
The deal also establishes a strategic investment vehicle to accelerate exploration and development once mineral discoveries are confirmed.
Officials believe the initiative could position Nigeria as a major player in global mining, leveraging deposits of bauxite, lithium, gold, iron ore, and rare earth minerals.
The agreement was witnessed by AFC President and CEO Samaila Zubairu alongside senior government officials, marking what stakeholders describe as a transformational milestone for Nigeria’s mining sector and long-term economic growth.
