Minister of Solid Minerals Development Dele Alake and other officials during the signing of a $1.3bn mining investment MoU with Africa Finance Corporation.
The Federal Government has signed a $1.3 billion foreign direct investment Memorandum of Understanding with the Africa Finance Corporation through the Solid Minerals Development Fund to expand Nigeria’s solid minerals sector.
Officials say the investment is expected to contribute about $1.2 billion annually to Nigeria’s Gross Domestic Product, generate $8 billion in foreign exchange earnings, and add more than $25 billion to the national economy over the lifecycle of the projects.
The agreement covers three major initiatives:
• A $1.3 billion alumina production project
• A nationwide geoscience mapping programme
• Creation of an investment vehicle to support mineral sector development.
Minister Speaks
Speaking at the ceremony, Minister of Solid Minerals Development, Dele Alake, described the agreement as a major step toward strengthening the mining industry.
He said the partnership is expected to increase the sector’s contribution to Nigeria’s GDP and support economic diversification.
The minister stated that he had approved measures to fast-track permits, titles, and regulatory clearances to enable the projects to commence without delays.
SMDF Executive Secretary
Executive Secretary of SMDF, Fatima Shinkafi, said the agreement represents the agency’s largest funding project since its establishment.
She explained that feasibility studies conducted jointly by SMDF and AFC indicate strong prospects for attracting investment and positioning Nigeria as a competitive destination in the global minerals market.
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Permanent Secretary’s Remarks
Permanent Secretary in the ministry, Farouk Yabo, commended the initiative, saying it could help place Nigeria on the global mining map if properly implemented.
Background
Nigeria’s solid minerals sector has long been identified as a key area for economic diversification, but it contributes only a small share to national revenue due to limited investment, inadequate geological data, and weak processing capacity.
The Federal Government has recently introduced reforms aimed at improving exploration, attracting investors, and increasing local value addition in the mining industry.
The new agreement with AFC is part of these efforts to expand production, improve geological mapping, and generate more export earnings outside the oil sector.
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