By Boluwatife Oshadiya| March 2, 2026
KEY POINTS
- Federal Government and Africa Finance Corporation sign partnership to fund three solid minerals projects
- $1.3bn alumina refinery to process one million tonnes of bauxite annually
- Project projected to contribute $1.2bn to GDP yearly and $8bn in FX earnings
MAIN STORY
The Federal Government has signed an investment partnership with Africa Finance Corporation (AFC) to jointly fund three major solid minerals initiatives, including a $1.3 billion alumina refinery designed to process one million tonnes of bauxite annually.
The agreement was signed Sunday in Abuja, according to a statement issued by Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development. Executive Secretary of the Solid Minerals Development Fund (SMDF), Hajiya Fatima Shinkafi, signed on behalf of the government, while Franklin Edochie, AFC Deputy Director and Head of Metals and Mining, represented the corporation.
The proposed refinery is expected to operate at 95 percent utilisation over a projected 20-year lifecycle, generating an estimated 19 million tonnes of alumina output. Beyond the refinery, the partnership includes a nationwide geoscience mapping programme and the establishment of a dedicated investment vehicle to accelerate exploration and production activities.
Minister of Solid Minerals Development, Dele Alake, described the agreement as a landmark transaction capable of transforming Nigeria’s mining sector and increasing its contribution to gross domestic product.
Initial feasibility assessments conducted by AFC and SMDF reportedly confirmed the project’s commercial viability and international competitiveness.
WHAT’S BEING SAID
“The facility is designed for about 20 years at 95 percent utilisation, with total alumina output projected at 19 million tonnes,” said Dele Alake, Minister of Solid Minerals Development.
“This project will stand as Nigeria’s largest private mining investment and a landmark foreign direct investment, contributing $1.2 billion to GDP annually and over $25 billion across its lifecycle,” Alake added.
AFC representatives noted that the joint strategic investment vehicle would accelerate exploration campaigns and fast-track development of selected mineral leases nationwide.
WHAT’S NEXT
- Relevant regulatory agencies have been directed to fast-track approvals and permit processing
- Joint strategic investment vehicle to be formally constituted in the coming months
- Exploration and mapping exercises expected to commence following final technical clearances
 to jointly fund three major solid minerals initiatives, including a $1.3 billion alumina refinery designed to process one million tonnes of bauxite annually.){kind=link}