In a landmark move to transform Nigeria’s mining sector, the Federal Government has joined forces with the Africa Finance Corporation (AFC), investing $1.3 billion to boost industrial minerals.
$1.3 Billion Mining Partnership
Announced on Sunday in Abuja by Minister of Solid Minerals Development, Dele Alake, the agreement positions the country as a serious player in global mineral processing.
Alumina Refinery At The Core
At the heart of the deal, the government and AFC will build a 1 million-tonne-per-year alumina refinery.
They plan to operate it for 20 years at 95% capacity, producing an estimated 19 million tonnes of alumina.
Consequently, the refinery will become Nigeria’s largest private mining investment, adding $1.2 billion to GDP each year and generating more than $25 billion for the economy over its lifetime, including roughly $8 billion in foreign exchange earnings.
Strategic Expansion And Reforms
Moreover, the partnership launches a nationwide geoscience mapping programme to provide reliable mineral data.
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It also creates a special investment vehicle to accelerate exploration and production across selected mineral leases.
Minister Alake highlighted the reforms and fast-tracked approvals, directing agencies to ensure smooth processing of permits, titles, and regulatory clearances.
The signing ceremony united top officials, including Hajiya Fatima Shinkafi of the Solid Minerals Development Fund and Franklin Edochie of AFC.
In addition, the partnership complements other government initiatives, such as a high-purity gold refinery in Lagos, three additional gold refineries in development, and a $600 million lithium processing plant in Nasarawa State, underscoring Nigeria’s commitment to diversify its economy beyond oil.
