Business
Russia Tasks Nigeria On ALSCON Court Ruling
Russia’s Foreign Ministry
warned Nigeria last Thursday of potential damage to bilateral relations and urged action against a court decision that stripped the world’s largest aluminium producer, Rusal, of its core African asset.
The Supreme Court ordered last week that Rusal, which owns 85 per cent of the formerly state-run Aluminium Smelter Company of Nigeria, should cede its ownership, because the assets should have gone to another bidder, United States-based BFI Group, when ALSCON was privatised five years ago, The Tide source reports.
Rusal said the ruling was against the Bureau of Public Enterprise, which handled the privatisation and gave it the green light to acquire the stake for $205m in 2007. The decision would thus not affect its ownership of ALSCON, the company said.
The ministry said in a statement on its website, www.mid.ru, “The ruling could … to a significant extent, undermine Russian-Nigerian investment, economic cooperation and incur negative consequences for the whole scope of bilateral ties.
“We urge the Nigerian government to take the necessary actions in order to prevent potential damage to the existing fruitful and mutually beneficial relations.”
BFI, headed by American-Nigerian, Reuben Jaja, took BPE to court, saying the agency breached its contract.
The Supreme Court ruling last week ordered BPE to revert to the original preferred bidder, BFI Group, to pay the agreed price of $410m for ALSCON.
Oleg Deripaska, the controlling shareholder of Rusal, is a billionaire who has long enjoyed close ties with the Kremlin. The aluminium giant received billions of dollars in state bail-out funds after the 2008 global financial crash.
ALSCON is one of Rusal’s key African assets with annual project capacity of 120,000 tonnes; however, its operations have been hampered by regular electricity cuts allowing ALSCON to produce only 15,000 tonnes of aluminium last year, a company spokeswoman said.
“There is no evidence on record that Rusal has taken possession of ALSCON,” Justice John Fabiyi said in the lead judgment, according to The Tide source.
“The appellant’s (BFI Group) bid in the sum of $410m was preferred by the respondent. The appellant was declared winner at the auction sale conducted on June 14, 2004.”
However, Rusal said on Monday the ruling was between BPE and BFI Group and it would retain its shares in ALSCON.
“(The) ruling of Nigeria’s Supreme Court neither does change, nor can change the owner of ALSCON shares belonging to UC Rusal,” a company spokeswoman told The Tide source on Monday.
“This litigation relates to claims of BFI Group to BPE of Nigeria, which means that it is Nigerian government to bear responsibility for such ruling and that it cannot have effect on Rusal’s ownership of ALSCON shares.”
This means as far as Rusal is concerned, it still owns 85 per cent of ALSCON and the ruling is against BPE, a government agency, and not the Russian company.
A spokesman for BPE said on Monday the agency would wait until it received the judgment before making further comments, but they would adhere to any ruling passed by the court.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.