Nigeria Signs $1.3 Billion Deal for Alumina Refinery

Nigeria has signed a $1.3-billion investment agreement with the Africa Finance Corporation (AFC) to build an alumina refinery and support nationwide mineral exploration, the government announced.

The deal is among the country’s largest private-sector mining investments.

The agreement, facilitated through the Solid Minerals Development Fund, includes construction of the refinery, a nationwide mineral mapping programme, and the creation of an investment vehicle to accelerate exploration.

Mines Minister Dele Alake on Sunday said the deal will boost mining revenue and reduce Nigeria’s reliance on oil.

“This means jobs, technology, foreign exchange, and real contribution to our GDP over the long term. The numbers are strong, but what matters more is viability,” Alake said.

The refinery is expected to process 1 million metric tonnes of bauxite annually, powered by a gas-fired plant that provides steam and electricity.

At 95% capacity over 20 years, it is projected to produce about 19 million tonnes of alumina.

Alumina is a versatile material primarily used to produce aluminium. It is also applied in ceramics, abrasives such as sandpaper and grinding wheels, chemical catalysts, refractories, pharmaceuticals, and water treatment.

Its wide-ranging industrial uses, from aerospace to healthcare, make it a key commodity in global manufacturing and technology.

Alake said the partnership represents a major step toward developing Nigeria’s mineral resources and increasing mining’s contribution to the national economy.

“This is how we grow mining’s real contribution to our economy. We have the minerals. With this partnership, we are putting serious capital behind developing them properly.”

I witnessed the signing of an agreement between the Africa Finance Corporation and the Solid Minerals Development Fund to jointly fund three major initiatives, including a $1.3 billion alumina refinery.

This means jobs, technology, foreign exchange, and real contribution to our… pic.twitter.com/bXxczersHG

— Dele Alake (@AlakeDele) March 1, 2026