The Nigerian Government has invested in a $1.3 billion alumina refinery project with the Africa Finance Corporation (AFC).
The partnership, along with the alumina refinery, is part of a decision to jointly fund three projects.
The alumina refinery will process one million tonnes of bauxite annually.
Nigeria’s Minister of Solid Minerals Development, Dele Alake, described the agreement as a landmark deal to transform mining and boost its GDP contribution.
According to a statement, the Executive Secretary, Solid Minerals Development Fund (SMDF), Hajiya Fatima Shinkafi, signed for the Nigerian government, while Franklin Edochie, AFC Deputy Director and Head of Metals and Mining, signed for the corporation.
The other projects include a comprehensive geoscience mapping exercise and the creation of an investment vehicle to advance the initiatives.
“The facility is designed for about 20 years at 95% utilisation, with total alumina output projected at 19 million tonnes,” Mr Alake said.
Mr Alake went on to explain that the project would be Nigeria’s largest private mining investment and a landmark foreign direct investment, contributing $1.2 billion to GDP yearly.
He added that it would generate more than $25 billion for the economy across its lifecycle and $8 billion in foreign exchange earnings.
Mr Alake said that the reforms had secured the investment climate, modernised regulations and established a world-class mineral licensing regime attracting serious private capital.
“I have granted all necessary approvals to fast-track the AFC–SMDF investments. I have directed relevant agencies to ensure seamless processing and grant of all permits, titles and regulatory clearances for timely execution,” he concluded.
The initial feasibility studies by the AFC and SMDF confirmed the project’s commercial viability and competitiveness.
The projects will support the ministry’s goal of generating reliable mineral data, de-risking exploration and unlocking Nigeria’s mineral potential.
