Africa Finance Corporation, Nigeria Sign $1.3 Billion Alumina Refinery Deal

The Nigerian government has entered a $1.3 billion investment partnership with the Africa Finance Corporation to develop a one-million-tonne-per-year alumina refinery, alongside two strategic mining initiatives aimed at boosting the country’s solid minerals sector.

The agreement, announced by the Minister of Solid Minerals Development, Dele Alake, through his media aide, comes as part of a broader effort to increase the mining sector’s contribution to the nation’s GDP and attract large-scale private investment.

Under the pact, the government and AFC will jointly fund the construction of the alumina refinery, implement a nationwide geoscience mapping programme to generate reliable mineral data, and create a special strategic investment vehicle to accelerate exploration, development, and production of targeted mineral assets.

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The minister said the refinery is expected to operate at 95% capacity over a 20-year lifespan, producing a total of 19 million tonnes of alumina. He confirmed that all necessary approvals have been granted to expedite the AFC–SMDF investments and directed relevant agencies to ensure smooth processing of permits, titles, and regulatory clearances. Alake emphasised that recent reforms have modernised mineral regulations, strengthened the investment climate, and established a licensing framework capable of attracting serious private sector capital.

The refinery project alone is projected to contribute approximately $1.2 billion annually to Nigeria’s GDP. Over its lifespan, it could generate more than $25 billion for the economy and around $8 billion in foreign exchange earnings. Initial feasibility studies by AFC and the Solid Minerals Development Fund confirmed the project’s commercial viability and competitiveness, positioning it as a cornerstone investment for Nigeria’s mineral value chain.

The deal was formally signed by Hajiya Fatima Shinkafi on behalf of the government and Franklin Franklin Edochie for AFC. The partnership also includes a national geoscience mapping exercise and the establishment of a joint strategic investment vehicle to accelerate exploration and eventual production across selected mineral leases, reinforcing Nigeria’s push to diversify its economy away from oil dependence.