The Federal Government and the United States are moving towards a major mining cooperation agreement expected to be signed on the sidelines of the United Nations General Assembly in New York, as Nigeria intensifies efforts to attract international investment into its largely underdeveloped solid-minerals industry.
The proposed Memorandum of Understanding will provide a framework for cooperation across the critical-minerals value chain, including geological exploration, mining, processing, refining and local value addition.
The agreement follows talks in Abuja between Minister of Solid Minerals Development Dele Alake and United States Embassy Chargé d’Affaires Keith Heffern, according to a statement issued on Sunday by the minister’s media aide, Lara Owoeye-Wise.
The latest engagement builds on earlier discussions in Washington, where a Nigerian delegation held talks with US officials on strengthening secure mineral supply chains.
Nigeria Wants More Than Mineral Exports
The significance of the proposed agreement extends beyond attracting companies to extract Nigerian minerals.
The Federal Government is increasingly pushing for minerals to be processed and refined locally, allowing Nigeria to capture more of their economic value before export.
That approach is particularly important as global competition intensifies for minerals required for electric vehicles, batteries, renewable-energy equipment, electronics and other advanced technologies.
Nigeria possesses deposits of lithium, gold and several other commercially important minerals, but the contribution of formal mining to the economy remains relatively small compared with the country’s resource potential.
Alake told the US delegation that gold deposits are present in Zamfara, while lithium resources are found in states including Nasarawa, Kebbi and Taraba.
The government’s strategy is therefore to move solid minerals from a largely fragmented extractive industry into a more organised industrial value chain.
Geological Data Goes Digital
One obstacle facing prospective mining investors has historically been access to reliable geological information.
The Federal Government says it is addressing that problem through the digitisation of Nigeria’s geological data.
The Nigerian Geological Survey Agency has been mapping and cataloguing mineral resources, with the resulting digital information intended to help investors identify potential deposits and make better-informed exploration decisions.
Reliable geological data can substantially reduce investment risk.
Mining companies typically spend significant amounts before determining whether a deposit can be developed commercially. Better information allows them to narrow potential exploration areas before committing large amounts of capital.
Fortescue, Glencore and BHP on Government’s Radar
Nigeria is also engaging some of the world’s biggest mining companies.
Alake disclosed that the Federal Government has held discussions with international players including Fortescue, Glencore and BHP about potential opportunities in Nigeria.
Securing investment from major global operators would represent an important step for a sector that has historically been dominated by smaller companies and artisanal mining.
But investment will depend on more than the availability of minerals.
Security around mining communities, infrastructure, electricity, regulatory consistency and clarity over federal and state responsibilities will all influence investment decisions.
Under Nigeria’s constitutional framework, mineral resources fall under federal jurisdiction. However, states can establish Special Purpose Vehicles and apply for mining licences if they want to participate commercially in developing resources within their territories.
Several states have already adopted that model, according to the ministry.
Critical Minerals Become Strategic Assets
The timing of the Nigeria-US discussions is significant.
Critical minerals have become increasingly important to international economic and national-security strategies as governments attempt to secure the raw materials needed for batteries, renewable energy and advanced manufacturing.
Countries are also trying to diversify supply chains rather than depend excessively on a small number of producers.
That creates an opportunity for mineral-rich African economies.
But Nigeria’s economic benefit will depend heavily on whether it can avoid simply exporting unprocessed resources.
Building processing plants, refineries and manufacturing operations around mineral deposits would create substantially more employment and industrial activity than extraction alone.
The planned agreement with Washington could therefore become an important part of Nigeria’s attempt to use solid minerals as a second major natural-resource industry alongside oil and gas.
The test will be whether diplomatic agreements signed in New York ultimately translate into mines, processing facilities, jobs and investment on the ground.
