Nigeria, US sign framework to attract investment into $700bn mineral resources

Nigeria and the United States have signed a framework aimed at attracting American investment into Nigeria’s estimated $700 billion mineral resources.

The agreement was signed on behalf of the governments of the two countries by Nigeria’s Minister of Solid Minerals Development, Dele Alake, and the US Deputy Secretary of State, Christopher Landau, on Wednesday at Nigeria’s Mission House in New York.

According to a statement by Kehinde Bamigbetan, Special Adviser to the Minister of Solid Minerals Development, the signing took place on the sidelines of the 81st United Nations General Assembly.

The framework is expected to use the relationship between the Nigerian and US governments as a foundation for business-to-business transactions and investment across Nigeria’s mineral value chain.

It covers cooperation in geological data and exploration, mineral development and processing, infrastructure and technical capacity.

Speaking at the ceremony, Mr Alake said the agreement represented a shift from Nigeria’s traditional role as an exporter of raw minerals towards greater domestic value addition.

“Some agreements manage the present, and some agreements shape the future. The framework we sign today belongs to the second kind,” Mr Alake said.

He said Nigeria and the US shared the view that supply chains for critical minerals must be secure, resilient and supported by responsible investment.

“But let me be clear about Nigeria’s ambition. We are not here to remain a source of raw material for the values that others create. Our goal is to turn potential into lasting value at home through stronger local processing, new skills, quality jobs, and new opportunities for Nigerian businesses,” he said.

According to the minister, the framework would enable both countries to collaborate on exploration, mineral development and processing, infrastructure and technical capacity.

He said its implementation would support the economic diversification objectives of President Bola Tinubu’s administration and promote industrial growth.

Mr Alake, however, said the signing was only the beginning of the process.

“Now comes the harder and more important work: moving from agreement to implementation. A signature is a promise, results are the proof,” he said.

He added that Nigeria would, in the coming months, identify viable projects, mobilise investments and establish commercial partnerships capable of delivering measurable benefits to both countries.

US pledges partnership

Mr Landau said the United States regarded Nigeria as a strategic partner, describing the country as a regional power because of its population and economic position.

He said the agreement would create opportunities for greater prosperity in both countries and reaffirmed the US commitment to supporting Nigeria’s economic growth.

“The signal we are sending is that the United States and Nigeria are partners,” he said.

Mr Landau said the two countries had undertaken several initiatives under Presidents Donald Trump and Bola Tinubu over the previous one and a half years, adding that Washington wanted to build on the momentum.

The US delegation included the Deputy Assistant Secretary for West African Affairs, Rich Michaels; Acting Deputy Assistant Secretary for Southern Africa, Foreign Assistance and Critical Minerals, Chris Kulukundis; Senior Policy Adviser to the Deputy Secretary, Wyatt Toehlkeke; and Jitu Sardar.

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Sanwo-Olu, other Nigerian officials attend

Lagos State Governor Babajide Sanwo-Olu witnessed the signing alongside the Permanent Secretary of the Ministry of Solid Minerals Development, Yusuf Yabo; Director-General of the Nigerian Mining Cadastral Office, Simon Nkom; Executive Secretary of the Solid Minerals Development Fund, Fatima Shinkafi; and Chief Executive Officer of the Nigeria Solid Minerals Company, Martin Imonitie.

Governor Sanwo-Olu later said on X that he was present at the Mission House when Nigeria and the US signed an important framework for investment in Nigeria’s mining sector.

“The focus of the framework is to move beyond simply exporting raw materials by building a stronger local value chain through processing, exploration, better infrastructure and technical capacity.

“This will help us turn Nigeria’s mineral wealth into lasting growth and support President Bola Ahmed Tinubu’s Renewed Hope Agenda to diversify our economy.

He said the initiative could help convert Nigeria’s mineral resources into economic opportunities and support the federal government’s economic diversification agenda.