The Federal Government, through the Solid Minerals Development Fund, and the Africa Finance Corporation have signed an investment agreement worth $1.3 billion to jointly fund three mining sector initiatives, including construction of a major alumina refinery, officials said.
The agreement was executed at a ceremony in Abuja, with representatives of both parties signing a memorandum of understanding on Sunday.
A statement by Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development, outlined the scope of the three projects covered by the pact.
The investment deal includes funding for:
An alumina refinery project valued at $1.3 billion, designed to process about one million tonnes of bauxite ore annually using a modern Bayer‑process flowsheet supported by an on‑site gas‑fired cogeneration plant for steam and power.
A comprehensive nationwide geoscience mapping exercise to gather detailed geological data across Nigeria, aimed at improving exploration planning and attracting investors.
A joint strategic investment vehicle to accelerate development of identified mineral assets and drive exploration, development and production activities.
Minister of Solid Minerals Development, Dr. Dele Alake, described the pact as a landmark transaction positioned to transform the mining sector and increase its contribution to Nigeria’s gross domestic product.
The SMDF executive secretary, Fatima Shinkafi, said the agreement represents the agency’s largest single funding project since its establishment.
She noted the significance of partnering with AFC to back the federal government’s mineral value‑addition policy.
Officials said the alumina refinery is designed for approximately 20 years of operation at 95 per cent utilisation, with projected total output of about 19 million tonnes of alumina over the facility’s lifespan.
The ministry noted that the project is expected to be Nigeria’s largest private sector investment in the mining industry, and included projections that it could contribute about $1.2 billion annually to GDP, inject over $25 billion into the national economy over its lifecycle, and generate about $8 billion in foreign exchange earnings.
Permanent Secretary of the Ministry, Engr. Farouk Yabo, said the development underscores the efforts to modernise regulatory frameworks and position Nigeria competitively in the global mining landscape.
During the signing, SMDF and AFC representatives agreed to fast‑track implementation by processing necessary permits, titles and regulatory clearances to support timely execution of the partnership’s projects.
