Nigeria, US sign framework to boost investment in $700bn solid minerals sector

Nigeria and the United States have signed a framework aimed at deepening American investment and technical cooperation in Nigeria’s solid minerals sector.

The agreement was signed in New York on Wednesday, September 23, on the sidelines of the 81st United Nations General Assembly (UNGA), by Nigeria’s Minister of Solid Minerals Development, Dele Alake, and US Deputy Secretary of State, Christopher Landau.

The framework covers key areas including geological exploration, mineral development and processing, infrastructure, and technical capacity building.

Alake said Nigeria’s mineral resources are estimated to be worth about $700 billion, stressing that the country must move beyond the export of unprocessed minerals to derive greater economic value from its natural resources.

He said greater emphasis would be placed on local processing, adding that the approach would help create quality employment, strengthen domestic value chains and expand opportunities for Nigerian businesses.

The minister said the partnership with the United States would provide an opportunity to attract more investment, expertise and technology into the sector while supporting Nigeria’s broader efforts to diversify its economy.

Under the framework, cooperation is expected to extend beyond mineral exploration to the development of infrastructure and processing capacity required to establish more competitive value chains.

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The Nigerian government said the immediate priority is to translate the agreement into concrete commercial opportunities rather than leave it as a broad diplomatic framework.

The next phase will therefore focus on identifying specific projects, investment opportunities and commercial partnerships capable of supporting mineral exploration, processing and related infrastructure development.

The agreement comes as Nigeria seeks to reduce its dependence on crude oil revenues and expand the contribution of non-oil sectors to economic growth.

The solid minerals sector has been identified by the Federal Government as a key area for economic diversification, with officials seeking to attract domestic and international capital into exploration, processing and value addition.

The government has also increasingly emphasised local processing as a means of retaining more value from Nigeria’s mineral resources, rather than exporting raw minerals and importing finished products.

The US partnership could consequently provide a platform for collaboration in areas ranging from geological data and exploration technology to processing, infrastructure and workforce development.

However, the extent of the agreement’s economic impact will depend on how quickly the proposed framework translates into actual investments, operational projects and sustainable commercial partnerships across Nigeria’s mineral-producing regions.