Nigeria and the United States have agreed on a new framework to promote investment and cooperation in Nigeria’s mining industry.
The framework was signed in New York by Solid Minerals Development Minister Dele Alake and US Deputy Secretary of State Christopher Landau during the 81st United Nations General Assembly.
The Nigerian government values the country’s mineral resources at approximately $700 billion.
What the Nigeria-US agreement covers
The framework provides for cooperation in several areas of the mining industry.
These include:
- Geological data and mineral exploration
- Mineral development
- Mineral processing
- Mining-related infrastructure
- Technical capacity building
It is also intended to create a platform for government-backed relationships to support commercial partnerships between Nigerian and American businesses.
Alake wants Nigeria to process more minerals locally
Alake said Nigeria must increase the amount of mineral processing carried out within the country.
He argued that exporting raw materials limits the value Nigeria can capture from its natural resources.
The minister said the government’s objective includes expanding local processing, developing skills, creating jobs and opening opportunities for Nigerian businesses.
He also said both countries would identify viable projects and work toward converting the framework into actual investments.
US interested in critical mineral supply chains
The agreement comes as the United States seeks to strengthen and diversify access to critical minerals.
These resources are important for industries such as batteries, electric vehicles and renewable energy infrastructure.
Nigeria’s deposits of lithium, gold, tin, iron ore, gemstones and other minerals have therefore attracted increasing attention from international investors.
Reuters reported that Chinese companies have been among the active foreign investors in Nigeria’s lithium sector.
From agreement to projects
The signing does not itself represent a $700 billion investment by the United States.
Rather, the $700 billion figure refers to the Nigerian government’s estimated value of the country’s mineral resources, while the new framework is intended to facilitate investment and cooperation in developing those resources.
Alake said the government would now focus on implementation by identifying viable projects and developing commercial partnerships.
The Federal Ministry of Information said the framework is expected to support Nigeria’s efforts to increase value addition and promote industrial development.
The agreement therefore establishes a framework for further negotiations, projects and investments between Nigerian and US interests in the mining sector.
