ABUJA, Nigeria, The Federal Government of Nigeria has signed a $1.3 billion investment agreement with the Africa Finance Corporation (AFC) to develop a major alumina processing project and boost mineral exploration across the country. The deal executed through the Solid Minerals Development Fund (SMDF) was sealed in the capital on Sunday and is being hailed as one of the largest private‑sector mining deals in Nigeria’s recent history. It aims to shift the country’s reliance away from raw exports toward domestic value addition, a key goal of President Bola Tinubu’s broader economic reform agenda.
Under the agreement, the partners will construct an alumina refinery capable of processing up to one million tonnes of bauxite ore annually, powered by an on‑site gas‑fired plant for steam and electricity. The project also includes a nationwide mineral mapping programme to improve geoscience data and a strategic investment vehicle to accelerate exploration efforts expected to unlock new mining opportunities and attract further investment. Officials say the refinery, designed to operate at high utilisation over 20 years, could produce roughly 19 million tonnes of alumina throughout its lifespan.
Government and industry leaders describe the pact as a transformative moment for Nigeria’s mining sector, with projected gains that extend well beyond immediate industrial output. The project is expected to add about $1.2 billion annually to GDP, generate over $25 billion in economic value over its lifecycle and deliver nearly $8 billion in foreign exchange earnings significant boosts for a nation seeking to diversify its economy and deepen domestic processing of mineral resources rather than exporting them in raw form.