Nigeria has signed a $1.3-billion investment agreement with the Africa Finance Corporation (AFC) to build a major alumina refinery and expand mineral exploration across the country.
The deal, described as a landmark move, was signed through the Solid Minerals Development Fund. It includes plans to construct a refinery, launch a nationwide mineral mapping programme, and create a special investment vehicle to accelerate mining exploration.
Mines Minister Dele Alake said the agreement will help advance President Bola Tinubu’s strategy to grow the mining sector and reduce Nigeria’s heavy reliance on oil revenues.
What the Refinery Will Do
The new facility will process about one million metric tonnes of bauxite each year and will be powered by a gas-fired plant to generate steam and electricity. Over 20 years, and operating at 95% capacity, it is expected to produce around 19 million tonnes of alumina.
Alumina is mainly used to produce aluminium, which is essential for industries such as construction, transport and aerospace. It is also used in ceramics, abrasives like sandpaper, petroleum refining as a catalyst support, water treatment, and even pharmaceuticals.
By investing in alumina production and mineral exploration, Nigeria hopes to unlock more value from its natural resources and diversify its economy beyond oil.
Source: TRT Africa
