The Federal Government and the African Finance Corporation (AFC) have signed a landmark Memorandum of Understanding to jointly fund three strategic projects in Nigeria’s mining sector, marking a major step in economic diversification. The deal includes a $1.3 billion alumina refinery, a nationwide geoscience mapping initiative, and a special investment vehicle to unlock the country’s mineral potential.
Signed in Abuja, the agreement underscores growing investor confidence in ongoing sector reforms. According to Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development, the alumina refinery is designed to process one million tonnes of bauxite annually using a modern Bayer-process flowsheet, supported by an on-site gas-fired cogeneration plant for steam and electricity.
Minister of Solid Minerals Development, Dele Alake, described the MOU as a transformative milestone expected to generate jobs, increase local value addition, and boost Nigeria’s GDP. The facility is projected to operate for 20 years at 95 percent utilisation, producing 19 million tonnes of alumina and contributing approximately $1.2 billion annually to the nation’s economy, generating over $25 billion in total project value and $8 billion in foreign exce earnings.
Executive Secretary of the Solid Minerals Development Fund (SMDF), Fatima Shinkafi, hailed the agreement as the largest project the fund has undertaken since its elishment. Beyond the refinery, the partners plan a nationwide geoscience mapping exercise to provide reliable data on mineral resources and a strategic investment vehicle to accelerate exploration and development of mining assets.
Alake assured investors that all necessary approvals would be fast-tracked, while Permanent Secretary Farouk Yabo described the deal as a reflection of ongoing reforms that position Nigeria prominently on the global mining map. The ceremony was witnessed by AFC President and CEO Samaila Zubairu and senior government officials.
The partnership highlights Nigeria’s commitment to leveraging its mineral wealth, fostering private sector collaboration, and reducing reliance on crude oil for economic growth.
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