AWC MDA Desk
Abuja — March 2, 2026
Nigeria has taken a major step toward revitalising its solid minerals sector with the signing of a landmark funding agreement between the Africa Finance Corporation (AFC) and the Solid Minerals Development Fund (SMDF) to jointly finance three strategic mining initiatives, including a $1.3 billion alumina refinery project.
The agreement underscores the Federal Government’s renewed drive to unlock the vast potential of Nigeria’s mineral resources and position the sector as a key pillar of economic diversification.
The Honourable Minister of Solid Minerals Development, Dele Alake, described the partnership as a transformative milestone for the industry. He said the alumina refinery project, alongside the other mining initiatives, would significantly enhance value addition, reduce raw mineral exports, and boost domestic processing capacity.
According to the Minister, the projects are expected to generate substantial employment opportunities, facilitate technology transfer, strengthen foreign exchange earnings, and contribute meaningfully to Gross Domestic Product (GDP) growth.
Alake emphasised that the government’s priority is to ensure long-term project viability through strong capital backing, adherence to global best practices, and transparent regulatory frameworks that inspire investor confidence.
He noted that by deepening local beneficiation of mineral resources, Nigeria aims to shift from being primarily an exporter of raw materials to becoming a competitive player in global mineral value chains.
The funding arrangement is seen as a critical component of broader reforms aimed at repositioning the mining sector as a sustainable revenue source and reducing the country’s overreliance on crude oil exports.
