Abuja Nigeria – The Federal Government of Nigeria has signed a $1.3 billion investment partnership with the Africa Finance Corporation (AFC) to develop a major alumina refinery and two other strategic mining projects, officials say. The deal is aimed at transforming the nation’s solid minerals sector, diversifying the economy and fostering industrialisation across key value chains.

The agreement was formalised on Wednesday March 4, 2026 at the Ministry of Solid Minerals Development headquarters in Abuja, where representatives of the Federal Ministry of Solid Minerals Development and AFC signed the investment framework under the supervision of the Minister of Solid Minerals, Dr Dele Alake, and AFC’s Acting Managing Director Andrew Alli.

Under the partnership $1.3 billion will be directed towards the construction and commissioning of an integrated alumina refinery that will process bauxite into alumina for use in aluminium production, officials said. The project is expected to create thousands of jobs enhance foreign exchange earnings and strengthen backward linkages in Nigeria’s industrial base.

In addition to the alumina refinery the investment will support two other strategic mining initiatives identified as high‑impact assets in the government’s diversification drive. These include the development of iron ore and lithium mining and processing facilities which are seen as critical to Nigeria’s long‑term manufacturing and energy storage industries.

The partnership reflects the Renewed Hope Agenda’s focus on solid minerals as a catalyst for economic growth beyond oil and gas. Dr Alake said that with the right investments and policy environment Nigeria could position itself as a major producer of alumina and other mineral commodities for both domestic use and export markets. He said the refinery will leverage Nigeria’s vast bauxite reserves, especially in the south‑west and middle belt, to stimulate local industry.

AFC’s Acting Managing Director Alli said the corporation was pleased to collaborate with the Federal Government on initiatives that can unlock the value of Nigeria’s natural resources and attract further foreign direct investment. He described the project as a benchmark in public‑private cooperation in Africa’s mining sector.

The strategic mining projects are expected to begin phased implementation later this year with environmental impact assessments mobilisation of contractors and community engagements scheduled in the coming months. Officials said the refinery and associated facilities are projected to create a multiplier effect on related sectors such as power logistics and downstream manufacturing.