Nigeria and the United States have agreed to deepen American investment in Nigeria’s mining sector as both countries seek to expand cooperation in the development of the country’s mineral resources.
The agreement was signed on Wednesday on the sidelines of the United Nations General Assembly in New York, according to the Minister of Solid Minerals Development, Dele Alake, who announced the deal on Thursday.
Alake said the framework would strengthen Nigeria-US cooperation around Nigeria’s estimated $700bn mineral resources. He said the agreement covers geological data and exploration, mineral development and processing, infrastructure and technical capacity.
Nigeria, while widely known for its oil reserves, has significant deposits of lithium, gold, tin, gemstones, iron ore and phosphate. Lithium has attracted growing international interest because of its use in batteries that support the global transition towards renewable energy.
Alake said the agreement would help both countries identify viable mining projects while promoting greater local processing of minerals. He said Nigeria wants to move away from exporting largely unprocessed ores and retain more value within the country.
“Nigeria cannot remain a source of raw materials while others capture most of the value,” Alake said, adding that the government was seeking increased local processing, job creation, skills development and greater opportunities for Nigerian businesses.
The agreement comes amid ongoing safety and environmental concerns in Nigeria’s mining industry, highlighting the need for investment to be accompanied by stronger standards and responsible mining practices.
