The Federal Government of Nigeria and the African Finance Corporation (AFC) have signed a historic Memorandum of Understanding (MoU) to jointly fund three major projects in the country’s mining sector. The agreement, inked in Abuja, includes a $1.3 billion alumina refinery, a nationwide geoscience mapping initiative, and a strategic investment vehicle designed to unlock Nigeria’s mineral potential.
According to Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development, the alumina refinery will process approximately one million tonnes of bauxite annually using a modern Bayer-process flowsheet, with an on-site gas-fired cogeneration plant supplying both steam and electricity.
“The Africa Finance Corporation and the Federal Government, through the Solid Minerals Development Fund (SMDF), have signed this MoU to fund the construction of the alumina refinery, a geoscience mapping exercise, and an investment vehicle to realise our mineral goals,” Tomori stated.
Minister of Solid Minerals Development, Dele Alake, described the partnership as a transformative milestone for the sector. “This is a landmark deal, poised to transform the mining sector and increase its contribution to the nation’s GDP,” he said. The refinery is projected to operate for 20 years at 95% capacity, producing around 19 million tonnes of alumina, generating $1.2 billion annually to GDP, $25 billion in economic value over the project’s lifespan, and $8 billion in foreign exchange earnings.
Executive Secretary of SMDF, Fatima Shinkafi, hailed the deal as the largest project the fund has undertaken since its inception. “We are proud to facilitate this phenomenal milestone. SMDF has come of age to sign this $1.3 billion capital expenditure project with AFC,” she said.
Beyond the refinery, the partners will conduct a nationwide geoscience mapping project to provide reliable data on Nigeria’s mineral resources—an essential step for attracting large-scale investment. A joint strategic investment vehicle will accelerate exploration and development of mining assets once exploration campaigns are completed.
Alake further stressed the government’s commitment to ensuring smooth and timely regulatory approvals for investors. “We are determined to ensure that investors do not face unnecessary delays. The era of bottlenecks is over,” he said.
Permanent Secretary Farouk Yabo described the MoU as evidence of ongoing sector reforms and Nigeria’s potential to secure a prominent place on the global mining map. The signing ceremony was attended by AFC President and CEO Samaila Zubairu, senior government officials, and Franklin Edochie, Deputy Director and Head of Metals and Mining at AFC, who signed on behalf of the corporation.
The partnership marks a critical step in Nigeria’s economic diversification away from crude oil, tapping into its vast deposits of bauxite, lithium, gold, iron ore, and rare earth minerals, while highlighting the transformative role of private-sector collaboration in the mining industry.
