LAGOS, Mar 2 – Nigeria has secured a $1.3 billion investment agreement with the Africa Finance Corporation to construct an alumina refinery and expand mineral exploration activities across the country, marking one of the largest private sector mining transactions in its history.
The agreement, executed through the Solid Minerals Development Fund, includes plans to develop a new alumina processing facility, roll out a comprehensive national mineral mapping initiative, and establish a dedicated investment vehicle aimed at accelerating exploration projects.
Minister of Mines and Steel Development Dele Alake described the transaction as a landmark step that aligns with President Bola Tinubu’s broader strategy to diversify government revenue streams and reduce Nigeria’s dependence on crude oil exports.
The planned refinery is expected to process up to one million metric tons of bauxite each year. It will be supported by a gas fired power plant designed to provide the steam and electricity required for operations.
At an estimated 95% capacity utilisation over a 20 year period, the facility is projected to generate approximately 19 million metric tons of alumina, significantly strengthening Nigeria’s position in the global minerals value chain.
The investment signals a renewed push by the federal government to unlock the economic potential of solid minerals and build a more resilient, non oil driven growth model.
