By Muhammed Abubakar, Reporting
THE Federal Government of Nigeria has entered into a Memorandum of Understanding (MoU) with the Africa Finance Corporation (AFC) to jointly finance three major initiatives, including a $1.3 billion alumina refinery, a comprehensive geoscience mapping exercise, and the establishment of an investment vehicle designed to advance sectoral objectives.
The Minister of Solid Minerals Development, Mr Dele Alake, hailed the agreement as a transformative milestone set to revolutionise the mining industry and enhance its contribution to the nation’s Gross Domestic Product (GDP).
The proposed alumina refinery is projected to process one million tonnes of bauxite ore annually, contributing an estimated $1.2 billion to GDP each year. Over its lifecycle, the project is expected to inject more than $25 billion into the national economy and generate $8 billion in foreign exchange earnings.
Described as the largest private investment in Nigeria’s mining sector to date, the project represents a significant foreign direct investment. Preliminary feasibility studies have affirmed its competitiveness and commercial viability.
Minister Alake has granted all necessary approvals to accelerate the AFC-SMDF investments and has directed relevant agencies to ensure the seamless processing and issuance of all requisite permits, titles, and regulatory clearances.
The Executive Secretary of the Solid Minerals Development Fund (SMDF), Hajia Fatima Shinkafi, expressed enthusiasm over what she described as a historic achievement, noting that it marks the agency’s largest funding initiative since its establishment.
The agreement underscores the Federal Government’s commitment to fast-tracking mining sector development. The minister affirmed that the Ministry’s reform programme has strengthened the investment climate, modernised the regulatory framework, and introduced a world-class mineral licensing regime.
The MoU was signed during a recent meeting between the AFC and the Federal Government, represented by the SMDF.
In a statement issued on Sunday by Mr Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development, it was confirmed that the MoU marked the culmination of discussions between the AFC and SMDF regarding the co-funding of the $1.3 billion alumina refinery. The facility will utilise a modern Bayer-process flowsheet and will include an on-site gas-fired cogeneration plant to supply steam and power.
“We are very proud and honoured to facilitate this phenomenal milestone, which is quite unprecedented since the inception of SMDF. It is a $1.3bn CAPEX. SMDF has come of age to be able to sit here and sign this deal with AFC. I thank the AFC for collaborating with us to boost the value addition policy of my boss, Dele Alake,” Shinkafi added.
Initial feasibility studies conducted jointly by the AFC and SMDF have confirmed the project’s competitiveness and commercial viability, validating the Ministry’s efforts to establish Nigeria as a globally competitive destination for mineral investment.
The AFC and SMDF also agreed to establish a joint strategic investment vehicle aimed at accelerating the development of identified exploration assets across Nigeria. The initiative is intended to drive rapid exploration, development, and production of selected exploration leases following successful exploration campaigns.
Hajiya Fatima Shinkafi signed the agreement on behalf of the Federal Government, while Mr Franklin Edochie, Deputy Director and Head of Metals and Mining at the Africa Finance Corporation, signed for the AFC. The ceremony was witnessed by Mr Samaila Zubairu, President and CEO of the AFC, and the Minister of Solid Minerals Development.
What's your reaction?
