Nigeria Signs $1.3 Billion Mining and Refinery Deal with AFC

Nigeria has signed a $1.3 billion investment agreement with the Africa Finance Corporation (AFC) to construct a new alumina refinery and fund a comprehensive mineral exploration initiative. Announced late Sunday, the deal marks a significant milestone in the country's efforts to diversify its economy and attract private-sector capital to its mining industry. The agreement was facilitated through the Solid Minerals Development Fund and includes three primary pillars: the construction of the refinery, the launch of a nationwide mineral mapping program, and the creation of a specialized investment vehicle to fast-track exploration projects. Mines Minister Dele Alake emphasized the strategic importance of the partnership in aligning with the federal government's broader economic goals. > The landmark deal will help speed up President Bola Tinubu's plans to boost mining revenue and cut reliance on oil. The planned refinery is expected to process 1 million metric tons of bauxite annually. To ensure operational efficiency, the facility will be powered by a dedicated gas-fired energy plant providing both steam and electricity. Over a 20-year lifespan at 95% utilization, the refinery is projected to produce roughly 19 million tons of alumina. This infrastructure is intended to strengthen the domestic value chain and position the nation as a more prominent player in the global mineral processing market.