The Federal Government has expressed optimism about the potential of the country’s solid minerals sector to drive economic growth, with a call for strategic investment in the sector.
Minister of Solid Minerals Development, Dr. Dele Alake also noted that Nigeria is blessed with an extraordinary endowment of solid mineral resources, including over 44 commercially viable minerals, spread across the country’s six geopolitical zones.
Represented by Amira Adamu Waziri, Senior Adviser on Mining & Policy to the Minister, Alake expressed concern that despite this wealth, the sector currently contributes less than 1% to national GDP,” citing insufficient geological data, weak infrastructure, informal operations, and a significant financing gap as major challenges.
The Minister’s representative stressed the importance of the capital market in unlocking the potential of the solid minerals sector, saying, “Through the capital market, we can mobilize long-term financing for exploration and project development, support junior mining companies to list, raise funds, and scale operations, facilitate secularization and monetization of geological assets, and channel institutional capital into infrastructure and processing hubs.”
Alake’s 7-point Agenda for the Ministry includes establishing the Nigeria Solid Minerals Company, creating Mines Marshals to tackle illegal mining, comprehensive geological data acquisition, formaliZation of artisanal and small-scale mining, promotion of value addition and local processing, attracting large-scale foreign and local investment, and robust stakeholder engagement.
The Minister’s representative expressed the Ministry’s commitment to inclusive and strategic stakeholder engagement, saying, “We are open to ideas, partnerships, and joint efforts that advance the collective good of the mining industry.”
Waziri said Nigeria stands at the threshold of a mining renaissance, with the mineral resources and political will in place, and now requires capital, technology, and partnerships to unlock this potential.
“We thank NASD PLC and SMDF once again for this opportunity and wish all participants fruitful deliberations,” Waziri said, expressing optimism about the potential of the solid minerals sector to drive economic growth and build an inclusive, resilient, and globally competitive economy.
In her presentation, Executive Secretary of the Solid Minerals Development Fund (SMDF), Fatima Shinkafi reiterated that the SMDF is making significant strides in unlocking investments in Nigeria’s solid minerals sector.
She added that the Fund is poised to unlock $1.5 billion worth of investment with a proposed $500 million fund.
“We are here to promote private sector-led investments, although we do have a social investment angle to the fund,” Shinkafi said.
“Our plan is to invest $500 million to unlock $1.5 billion in third-party investments and financing in the mining sector.”
“The SMDF has been working to deliver on its agenda through collaborative investment partnerships with Africa Finance Corporation (AFC).
The fund is investing alongside AFC to expand Nigeria’s geoscience capabilities and support the Nigerian Geological Survey Agency (NGSA).
“Additionally, SMDF is investing in the development of a midstream critical minerals processing plant and has launched an early-stage exploration financing facility backed by AFC.”
Shinkafi noted that funding remains a major challenge in the sector, with many projects in Nigeria still in the early exploration stage.
“Private capital will remain a challenge because many projects in Nigeria are at stages 1 or 2, requiring exploration and feasibility studies before financiers can get involved,” she said.
“Despite these challenges, the SMDF has made significant progress.
The fund has launched the AFC-SMDF Early-Stage Mining Development Facility to fund promising mining projects and has approved funding for initial studies on a critical minerals midstream facility.
“The SMDF has also led the execution of Nigeria’s first commercial gold purchase transaction and expanded its financing sources with improved funding for formalization activities.
“We are working to promote private sector-led investments, with a focus on sustainable and profit-oriented investments in key areas, in close coordination with stakeholders in the sector.
With these efforts, Nigeria’s solid minerals sector is poised for growth, driven by strategic investments and partnerships.” She added.
