The Federal Government has signed a $1.3 billion Memorandum of Understanding (MoU) with the Africa Finance Corporation (AFC) to jointly fund three major projects under a landmark foreign direct investment initiative tagged the Alumina Project. The agreement, executed through the Solid Minerals Development Fund (SMDF), is aimed at strengthening Nigeria’s solid minerals sector and deepening value addition within the mining industry.
In a statement issued yesterday in Abuja, the Special Assistant on Media to the Minister of Solid Minerals, Segun Tomori, described the MoU as the culmination of extensive negotiations between AFC and SMDF to drive large-scale investment into the country’s mineral value chain. According to the statement, the partnership will fund the construction of a $1.3 billion alumina refinery with the capacity to process an estimated one million tonnes of bauxite ore per annum.
The refinery is expected to utilise a modern Bayer-process flowsheet, a globally recognised method for refining bauxite into alumina. The project will also feature an on-site gas-fired cogeneration plant designed to generate both steam and power, ensuring energy efficiency and operational sustainability.
Beyond the refinery, the MoU encompasses comprehensive geoscience mapping to strengthen Nigeria’s mineral data infrastructure and an investment vehicle structured to attract further private sector participation into the solid minerals sector. Officials said the initiative aligns with the Federal Government’s broader strategy to diversify the economy away from oil dependency by unlocking the potential of the mining sector and promoting in-country processing of raw materials.
Industry analysts note that alumina, a key raw material used in aluminium production, holds significant export potential and could boost Nigeria’s industrial capacity, create jobs, and increase foreign exchange earnings. The government expressed optimism that the partnership with AFC would fast-track the development of critical mineral infrastructure and position Nigeria as a competitive player in the global alumina market.
The MoU signing marks one of the largest single investments in Nigeria’s solid minerals space in recent years, reinforcing ongoing efforts to attract long-term capital into the sector.
