Nigeria has joined Africa’s growing alumina processing sector through a $1.3 billion agreement to develop a large-scale alumina refinery, marking a significant milestone for the country’s mining and industrial ambitions, as reported by Independent Nigeria.
The Federal Government of Nigeria, via the Solid Minerals Development Fund, signed a memorandum of understanding with the Africa Finance Corporation to jointly finance and construct the refinery. The facility is expected to process up to one million tonnes of bauxite ore annually, utilising a modern Bayer-process flowsheet and an on-site gas-fired cogeneration plant to supply both steam and electricity for operations.
Business Insider Africa highlighted that the project represents the largest funding commitment in the agency’s history, projecting an annual GDP contribution of approximately $1.2 billion and creating an estimated $25 billion in economic value over its 20-year operational life, while potentially generating around $8 billion in foreign exchange earnings. The deal also includes a joint strategic investment vehicle to accelerate the exploration and development of mineral assets across Nigeria, further promoting value addition and industrialisation.
By establishing the refinery, Nigeria positions itself alongside other bauxite-rich African nations seeking to expand downstream processing, strengthen local industrial capacity, and integrate more fully into global metals supply chains, according to Independent Nigeria.
