Nigeria Government, AFC seal $1.3bn Alumina Refinery investment pact

Business, Politics

ABUJA, NIGERIA (Agency Report), March 3, 2026 — The Federal Government and Africa Finance Corporation (AFC) have signed an investment partnership to jointly fund three projects, including a 1.3 billion dollar Alumina Refinery.

The Minister of Solid Minerals Development, Dele Alake, described the agreement as a landmark deal to transform mining and boost its GDP contribution.

A statement by the minister’s Special Assistant on Media, Segun Tomori, said the pact was signed on Sunday in Abuja.

Executive Secretary, Solid Minerals Development Fund, Hajiya Fatima Shinkafi, signed for the government, while Franklin Edochie, AFC Deputy Director and Head of Metals and Mining, signed for the corporation.

Other projects include a comprehensive geoscience mapping exercise and the creation of an investment vehicle to advance the initiatives.

The alumina refinery, valued at 1.3 billion dollars, will process one million tonnes of bauxite annually.

“The facility is designed for about 20 years at 95 per cent utilisation, with total alumina output projected at 19 million tonnes,” Alake said.

He said the project would be Nigeria’s largest private mining investment and a landmark foreign direct investment, contributing 1.2 billion dollars to GDP yearly.

Alake added that it would generate over 25 billion dollars for the economy across its lifecycle and eight billion dollars in foreign exchange earnings.

He commended AFC and SMDF for aligning with the ministry’s seven-point agenda through the partnership.

Alake said reforms had secured the investment climate, modernised regulations and established a world-class mineral licensing regime attracting serious private capital. “I have granted all necessary approvals to fast-track the AFC–SMDF investments.

“I have directed relevant agencies to ensure seamless processing and grant of all permits, titles and regulatory clearances for timely execution,” he said.

Initial feasibility studies by AFC and SMDF confirmed the project’s commercial viability and competitiveness.

The initiative supports the ministry’s goal of generating reliable mineral data, de-risking exploration and unlocking Nigeria’s mineral potential. 

AFC and SMDF also agreed to establish a joint strategic investment vehicle to accelerate development of identified exploration assets nationwide.

The vehicle will drive rapid exploration, development and production on selected leases following a successful exploration campaign.