FG, AFC Seal $1.3bn Deal for Alumina Refinery, Others

The Federal Government and the Africa Finance Corporation (AFC) have signed a $1.3bn agreement to transform Nigeria’s mining landscape.

The deal, inked through the Solid Minerals Development Fund (SMDF), focuses on three strategic pillars: a massive alumina refinery, nationwide geoscience mapping, and a dedicated investment vehicle.
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The centerpiece of the agreement is the construction of a $1.3bn alumina refinery designed to process one million tonnes of bauxite ore annually.

This facility will utilize the modern “Bayer-process” and feature an on-site gas-fired plant to self-generate the steam and power required for operations.
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Minister of Solid Minerals Development, Dele Alake, hailed the agreement as a “landmark deal” during the signing ceremony in Abuja.

Alake emphasized that the project is poised to significantly increase the mining sector’s contribution to Nigeria’s Gross Domestic Product (GDP) while creating thousands of jobs through value addition.
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The economic projections for the refinery are substantial. Over its projected 20-year lifespan, the facility is expected to contribute $1.2bn annually to the GDP and generate approximately $8bn in foreign exchange earnings, helping to stabilize the national economy.
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Beyond infrastructure, the partnership addresses a long-standing barrier to investment: the lack of reliable data.

The deal includes a comprehensive geoscience mapping exercise intended to “de-risk” exploration for international investors by providing high-quality “big data” on Nigeria’s vast mineral deposits.
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Hajia Fatima Shinkafi, Executive Secretary of the SMDF, noted that this represents the most significant project in the fund’s history. She stated, “We are very proud and honoured to facilitate this phenomenal milestone. It is a $1.3bn capital expenditure project” that proves the SMDF has come of age.
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To ensure the momentum isn’t lost to bureaucracy, Minister Alake confirmed that all necessary regulatory approvals have been fast-tracked.

He noted that the “era of bottlenecks is over,” directing agencies to provide seamless processing for permits and titles to keep the project on schedule.