Nigeria has signed a $1.3 billion investment agreement with the Africa Finance Corporation (AFC) to construct an alumina refinery and finance a nationwide mineral exploration programme, in what authorities described as one of the country’s largest private-sector mining transactions.
The government said late Sunday that the pact was signed through the Solid Minerals Development Fund and encompasses three key components: the construction of an alumina refinery, the launch of a comprehensive national mineral mapping initiative, and the establishment of a dedicated investment vehicle aimed at accelerating exploration activities.
Nigeria’s Minister of Solid Minerals Development, Dele Alake, described the agreement as a “landmark deal” that would help advance the reform agenda of President Bola Tinubu, particularly efforts to diversify the economy, increase mining revenues and reduce reliance on oil exports.
According to Alake, the planned refinery will process up to 1 million metric tons of bauxite annually. The facility will be powered by a dedicated gas-fired energy plant designed to supply both steam and electricity required for operations.
At a projected 95% utilisation rate over a 20-year period, the refinery is expected to produce approximately 19 million metric tons of alumina, significantly boosting Nigeria’s capacity to add value to its mineral resources domestically rather than exporting raw materials.
The agreement marks a major step in Abuja’s strategy to position the mining sector as a key pillar of economic growth, with authorities seeking to attract private capital, strengthen geological data infrastructure and develop downstream processing capabilities.
