The Federal Government of Nigeria has unveiled a landmark mining investment deal worth $1.3 billion, which is expected to significantly boost the nation’s Gross Domestic Product (GDP) by up to $25 billion and generate $8 billion in foreign exchange earnings over its lifecycle.
Minister of Solid Minerals Development, Dele Alake, made the announcement on Thursday during his keynote address at the BusinessDay Mining Conference held in Abuja. He described the investment, spearheaded by the African Finance Corporation (AFC) and the Solid Minerals Development Fund (SMDF), as Nigeria’s most substantial private sector mining initiative to date.
“There’s an initial study conducted by the AFC and SMDF confirming the competitiveness and viability of the project,” Alake said. “They’re set to establish a critical minerals mainstream facility in Nigeria with an indicative capital expenditure of about $1.3 billion. This marks Nigeria’s most significant private sector-led mining venture.”
He added that the project would contribute around $1.2 billion annually to economic output, with a total impact of $25 billion over the life of the project. In addition, the initiative is projected to yield $8 billion in foreign exchange revenue. Alake hailed the deal as an endorsement of ongoing reforms in the sector and of the ministry’s efforts to attract private capital into mining.
A central part of the initiative is the Nigerian Mining Corporation (NMC), which Alake said is already operational. The corporation will be structured with 50% ownership by the private sector, 25% by the government, and the remaining 25% by other strategic stakeholders. The minister emphasised that this structure is designed to ensure efficient private-sector management practices and limit government interference.
“This company already has a CEO and a company secretary,” Alake disclosed. “It is structured and will soon begin full operations. With the private sector holding 50%, we are confident of a results-driven culture that will ensure the company’s long-term success.”
Alake also criticised Nigeria’s historical underinvestment in solid minerals, drawing attention to the country’s comparatively low exploration spending. He pointed out that, as of last year, Nigeria had allocated just $2 million to mineral exploration — a fraction of what smaller African countries have spent.
“In contrast, Côte d’Ivoire invested $148 million, Senegal spent $48 million, and Sierra Leone more than $14 million,” he said. “This stark underfunding is a result of decades of neglect due to our over-reliance on oil revenue.”
He attributed the situation to Nigeria’s dependence on oil wealth, which led to the sidelining of other productive sectors like agriculture, manufacturing, and mining.
“For decades, Nigeria enjoyed petro-dollar inflows and became a consumption-driven economy — importing even basic items like toothpicks and orange juice,” he remarked.
However, Alake praised President Bola Tinubu for recognising the importance of the sector and approving a significantly increased budget to reposition solid minerals as a key driver of economic diversification and long-term growth.
