Abuja: The Federal Government and the 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 the mining sector and boost its contribution to the country’s GDP.
A statement by the minister’s Special Assistant on Media, Segun Tomori, said the pact was signed on Sunday in Abuja.
Executive Secretary of the Solid Minerals Development Fund, Hajiya Fatima Shinkafi, signed on behalf of the government, while Franklin Edochie, AFC Deputy Director and Head of Metals and Mining, signed on behalf of the corporation.
The partnership sequence begins with a comprehensive geoscience mapping exercise, followed by the creation of an investment vehicle to advance the initiatives, culminating in the 1.3 billion dollar alumina refinery project.
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 that was 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.
According to initial feasibility studies by AFC and SMDF, after launching the mapping exercise and the investment vehicle, the alumina project was confirmed to be commercially viable and competitive.
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 the development of identified exploration assets nationwide.
Once the exploration campaign succeeds, the vehicle will then drive rapid exploration, development, and production on selected leases.
