Nigeria, AFC sign $1.3bn MoU to build refinery, boost mining sector

The Federal Government has signed a Memorandum of Understanding (MoU) with the Africa Finance Corporation (AFC) to jointly fund three major initiatives, including a $1.3 billion alumina refinery, a comprehensive geoscience mapping exercise, and the creation of an investment vehicle to drive the objectives.

Minister of Solid Minerals Development, Dele Alake, hailed the agreement as a landmark deal poised to transform the mining sector and significantly boost its contribution to the nation’s Gross Domestic Product (GDP).

The proposed alumina refinery is designed to process one million tonnes of bauxite ore annually. It is projected to contribute $1.2 billion to GDP each year, generate over $25 billion for the national economy across its lifecycle, and yield $8 billion in foreign exchange earnings.

Described as Nigeria’s largest private investment in the mining sector and a historic foreign direct investment, the project has been validated by initial feasibility studies confirming its competitiveness and commercial viability.

Minister Alake has granted all necessary approvals to fast-track the investments by the AFC and the Solid Minerals Development Fund (SMDF).

He has directed relevant agencies to ensure the seamless processing and issuance of all requisite permits, titles, and regulatory clearances.

Hajia Fatima Shinkafi, Executive Secretary of the SMDF, expressed delight at the milestone, noting that it represents the agency’s largest funding project since its establishment.Q

She commended the AFC for collaborating with the government to advance the value-addition policy championed by Minister Alake.

The deal underscores the Federal Government’s commitment to accelerating mining sector development.

Alake confirmed that the Ministry’s reform programme has secured the investment environment, modernised the regulatory framework, and established a world-class mineral licensing regime.

The MoU, signed during a recent meeting, was the culmination of talks between the AFC and SMDF to jointly fund the refinery, which will utilise a modern Bayer-process flowsheet and include an on-site gas-fired cogeneration plant for steam and power.

Beyond the refinery, the AFC and SMDF agreed to establish a joint strategic investment vehicle to accelerate the development of identified exploration assets across Nigeria.

The initiative aims to drive rapid exploration, development, and production of selected leases following a successful exploration campaign.

The MoU was signed by Hajiya Fatima Shinkafi for the Federal Government and Franklin Edochie, Deputy Director and Head of Metals & Mining at the AFC.

The ceremony was witnessed by Samaila Zubairu, President and CEO of the AFC, and the Minister of Solid Minerals Development.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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