FG Partners AFC on $1.3bn Mining Push to Drive Industrial Processing and Investment

The Federal Government has formalised a strategic investment partnership with the African Finance Corporation to support major projects designed to strengthen Nigeria’s mining industry and expand its economic contribution.

The agreement, executed through the Solid Minerals Development Fund, provides for three core initiatives: construction of a $1.3bn alumina refinery, a nationwide geological data programme, and the establishment of a joint investment platform to accelerate exploration and production activities.

Authorities said the planned refinery will process roughly one million tonnes of bauxite each year using modern refining technology, supported by an integrated gas-powered facility to provide electricity and industrial steam.

Minister of Solid Minerals Development, Henry Dele Alake, said the partnership represents a decisive step toward repositioning Nigeria’s mining sector from a largely extractive industry to one focused on value addition, industrial processing, and job creation.

Government projections indicate the project could significantly raise the sector’s GDP contribution while boosting export earnings and strengthening domestic manufacturing supply chains. The refinery is expected to operate for about two decades at high utilisation levels, generating millions of tonnes of processed output during its lifecycle.

Officials noted that feasibility assessments carried out by the partners confirmed the project’s commercial viability and its potential to attract broader foreign investment into Nigeria’s minerals value chain.

Executive Secretary of the Solid Minerals Development Fund, Fatima Shinkafi, described the agreement as the most substantial initiative undertaken by the fund to date, signalling its growing role in mobilising capital for large-scale resource development.

Beyond the refinery, the collaboration includes a comprehensive geoscience mapping exercise aimed at producing reliable mineral data across the country. Analysts have long argued that the absence of credible geological information discourages investors and raises project risks. Improved data availability is expected to enhance transparency, reduce exploration uncertainty, and accelerate investment decisions.

The partners also agreed to set up a dedicated investment vehicle to fast-track the development of commercially viable mineral assets. The platform will focus on moving projects quickly from exploration stages to production once deposits are confirmed.

To support execution, the minister said relevant agencies have been directed to streamline approvals and eliminate regulatory delays, signalling the government’s intention to make the mining sector more investor-friendly.

Senior officials said the agreement reflects ongoing reforms designed to attract institutional investors and position Nigeria as a competitive destination for mining capital.

The initiative comes as the country intensifies efforts to diversify its economy beyond oil by developing solid minerals such as bauxite, lithium, gold, and iron ore. Despite its resource potential, the sector currently contributes only marginally to national output due to infrastructure gaps, limited geological data, and persistent illegal mining activities.

Representatives of the corporation, including its President and Chief Executive Officer, Samaila Zubairu, attended the signing alongside government officials, highlighting the strategic importance of the partnership.

Industry observers say the success of the programme could determine whether recent policy reforms translate into sustained foreign investment and long-term industrial growth in Nigeria’s mining sector.