Nigeria Signs $1.3 Billion Deal with AFC to Build Alumina Refinery and Boost Mineral Exploration

Nigeria has signed a $1.3-billion deal with the Africa Finance Corporation to build an alumina refinery and support nationwide mineral exploration. The refinery, powered by a gas-fired plant, will process one million metric tonnes of bauxite annually, producing around 19 million tonnes of alumina over 20 years. Alumina is used in aluminium production, ceramics, abrasives, chemical processes, and water treatment, making it an important material across industries.

Nigeria has signed a $1.3-billion investment agreement with the Africa Finance Corporation (AFC) to construct an alumina refinery and support nationwide mineral exploration, the government announced. The deal is one of the largest private-sector mining agreements in the country.
The agreement, executed through the Solid Minerals Development Fund, covers several key initiatives: the construction of the alumina refinery, the launch of a comprehensive nationwide mineral mapping programme, and the creation of an investment vehicle designed to accelerate exploration activities across Nigeria.
Mines Minister Dele Alake stated on Sunday that the "landmark deal" will play a crucial role in advancing President Bola Tinubu’s plans to increase mining sector revenue and reduce the country’s reliance on oil.
The refinery is planned to process one million metric tonnes of bauxite annually and will be powered by a gas-fired energy plant that will provide both steam and electricity for the facility, according to Reuters.
Minister Alake explained that operating at 95% capacity over a 20-year period, the refinery is expected to produce approximately 19 million tonnes of alumina.
Alumina is a highly versatile compound with numerous industrial applications. Its primary use is in the production of aluminium metal, which has a wide range of applications in construction, transportation, and manufacturing. Beyond aluminium production, alumina is used in ceramics for products such as spark plugs, tiles, and other items requiring high strength and heat resistance.
As an abrasive, alumina is a key ingredient in sandpaper, grinding wheels, and polishing compounds. In chemical processes, it serves as a catalyst support, particularly in petroleum refining. Alumina is also employed in refractories for high-temperature insulation, in pharmaceuticals as an antacid, and in water treatment processes to remove impurities.
The unique chemical and physical properties of alumina make it a valuable material across diverse industries. From aerospace to healthcare, its applications span multiple sectors, contributing to the production of essential products and advanced technologies worldwide. This underscores alumina’s critical importance and highlights the potential economic impact of Nigeria’s new refinery and mineral exploration initiatives.