KEY POINTS
- Federal Government and AFC seal partnership to fund three mining projects.
- $1.3bn alumina refinery expected to process one million tonnes of bauxite annually.
- Deal projected to boost GDP, foreign exchange earnings and mining sector growth.
MAIN STORY
The Federal Government of Nigeria and the Africa Finance Corporation (AFC) have signed an investment partnership agreement to jointly fund three strategic mining projects, including a $1.3 billion alumina refinery.
The agreement was signed on Sunday in Abuja, according to a statement issued by the Minister of Solid Minerals Development, Dele Alake, through his Special Assistant on Media, Segun Tomori.
Executive Secretary of the Solid Minerals Development Fund (SMDF), Fatima Shinkafi, signed on behalf of the government, while AFC’s Deputy Director and Head of Metals and Mining, Franklin Edochie, signed for the corporation.
The projects under the partnership include the construction of an alumina refinery, a nationwide geoscience mapping exercise, and the establishment of a joint investment vehicle to drive exploration and development of mineral assets.
Alake described the agreement as a landmark deal that would transform Nigeria’s mining sector and significantly increase its contribution to national GDP.
He said the refinery, designed to process one million tonnes of bauxite annually over an estimated 20-year lifespan at 95 per cent utilisation, is projected to produce about 19 million tonnes of alumina.
According to him, the project is expected to contribute about $1.2 billion to GDP annually, generate over $25 billion in economic value throughout its lifecycle, and earn approximately $8 billion in foreign exchange.
THE ISSUES
Nigeria’s mining sector has long struggled with limited investment, inadequate geological data and regulatory bottlenecks. Experts say strategic partnerships and improved investment frameworks are crucial to unlocking the country’s vast mineral resources and diversifying the economy away from oil dependence.
WHAT’S BEING SAID
Alake said recent reforms had improved the investment climate by modernising regulations and strengthening the mineral licensing regime to attract credible private capital.
He disclosed that he had granted necessary approvals and directed relevant agencies to fast-track permits, titles and regulatory clearances to ensure timely project execution.
Initial feasibility studies conducted by AFC and SMDF confirmed the commercial viability and competitiveness of the alumina refinery project.
WHAT’S NEXT
Under the agreement, AFC and SMDF will establish a joint strategic investment vehicle to accelerate exploration, development and production across selected mineral assets nationwide.
The initiative is expected to support efforts to generate reliable mineral data, reduce investment risks and unlock Nigeria’s mineral potential.
BOTTOM LINE
The $1.3 billion investment pact marks a major step in Nigeria’s push to revitalise its mining sector, attract foreign capital and drive economic diversification through large-scale mineral development.
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