AFC, FG Sign $1.3 Billion Alumina Refinery Agreement

The Africa Finance Corporation (AFC) and the Federal Government of Nigeria have formalized a $1.3 billion investment partnership to construct an alumina refinery, which will have a capacity of 1 million tons per annum. This agreement, disclosed in a statement by Dele Alak, the Minister of Solid Minerals Development, represents a significant step toward increasing the mining sector's contribution to Nigeria's gross domestic product and attracting large-scale private capital.

The partnership will also involve the creation of a comprehensive national geoscience map and a special investment vehicle to drive exploration and development of mineral resources. The refinery is designed to operate for approximately 20 years at 95 percent capacity utilization, positioning it as a long-term anchor investment within Nigeria's mineral value chain.

The agreement underscores the government's commitment to reforming the mining industry, modernizing regulations, and establishing a licensing regime capable of attracting serious private capital.