Nigeria and the United States have signed a framework agreement aimed at increasing American investment in Nigeria’s mining sector and accelerating the development of the country’s solid mineral resources.
The agreement was signed and exchanged in New York on Wednesday by Nigeria’s Minister of Solid Minerals Development, Dele Alake, and United States Deputy Secretary of State Christopher Landau, on the sidelines of the 81st United Nations General Assembly.
The framework covers several areas of cooperation, including geological data and mineral exploration, mineral development and processing, infrastructure development and technical capacity building.
Alake said Nigeria’s mineral resources were estimated by the Federal Government at about $700 billion, describing the agreement as an opportunity to attract investment while increasing the value retained within the country.
He said Nigeria did not want to remain primarily an exporter of raw minerals and wanted greater emphasis placed on local processing, skills development, job creation and opportunities for Nigerian businesses.
The minister said the next phase would involve identifying viable projects, mobilising investment and establishing commercial partnerships capable of producing measurable economic benefits.
“Now comes the harder and more important work: moving from agreement to implementation,” Alake said, according to a statement issued by the Federal Ministry of Information and National Orientation.
He added that the cooperation would support the development of a value-addition-driven mineral supply chain rather than focusing solely on the extraction and export of raw materials.
The United States said the agreement would strengthen cooperation between the two countries in an area that has become increasingly important to global supply chains.
Landau said the US regarded Nigeria as a regional power deserving of a stronger partnership, adding that Washington was interested in supporting Nigeria’s economic growth.
“The signal we are sending is that the United States and Nigeria are partners,” Landau said.
The agreement also comes against the background of growing international competition for critical minerals used in industries including electric vehicles, renewable energy infrastructure and advanced technologies.
Reuters reported that Washington has been seeking stronger relationships with mineral-producing countries as it works to diversify critical-mineral supply chains. Nigeria, meanwhile, is seeking to reduce its dependence on oil by developing its mining industry.
Nigeria has deposits of several minerals that have attracted growing international attention, including lithium and gold. Earlier discussions between Nigerian and US officials had focused on exploration, processing, refining and value addition, as well as the development of reliable geological data to help investors assess opportunities in the country.
The Federal Government has also been encouraging greater participation by private investors and international mining companies as part of efforts to formalise and expand the sector.
However, the signing of the framework does not itself represent a guarantee of a specific investment amount or the immediate commencement of particular mining projects. The agreement establishes a basis for cooperation, with both sides expected to identify projects and develop commercial partnerships during the implementation phase.
The Nigerian government said the partnership was intended to support economic diversification, industrial development and job creation. A major element of the framework is the development of local processing capacity, which could allow Nigeria to capture more value from its mineral resources before export.
Officials and representatives from both countries attended the signing ceremony, including Lagos State Governor Babajide Sanwo-Olu, Permanent Secretary of the Ministry of Solid Minerals Development Yusuf Yabo, Nigerian Mining Cadastral Office Director-General Simon Nkom, Nigeria Solid Minerals Company Chief Executive Officer Martin Imonitie and Solid Minerals Development Fund Executive Secretary Fatima Shinkafi.
The pact represents the latest step in Nigeria-US efforts to expand cooperation in the mining sector. Its economic impact will depend largely on how quickly the framework is translated into exploration activities, processing facilities, infrastructure projects and actual investment commitments.
For Nigeria, the stated objective is to move further up the mineral value chain, create domestic economic opportunities and reduce dependence on the export of unprocessed resources.
