Market News

BY  Ayodeji Adegboyega

Nigeria has attracted more than $2.6 billion in foreign direct investment into its mining sector over the past two years, as the government steps up reforms and seeks to position the country as a key player in the global supply chain for critical minerals.

• Nigeria has attracted more than $2.6 billion in foreign investment into its mining sector in the past two years following reforms and a crackdown on illegal mining.
• The government is now pushing for regional energy hubs and industrial corridors to support cross-border mineral processing and trade.
• Officials say improved licensing systems and stronger enforcement have helped restore investor confidence.
• U.S. lenders have signalled interest in financing projects but emphasised the need for stable political and regulatory environments.

The Minister of Solid Minerals Development, Dele Alake, disclosed this during a panel session at the Powering Africa Summit in Washington, D.C., where policymakers and investors discussed Africa’s role in meeting rising global demand for minerals used in electric vehicles, batteries and renewable energy technologies.

Speaking on the panel titled “Critical Minerals in Africa: Meeting Global Demand,” Alake said recent reforms in Nigeria’s mining sector, including digitised licensing, improved regulation and tighter security, had helped restore investor confidence and attract new capital.

He said the government has also moved to tackle illegal mining through a special enforcement unit known as the Mining Marshals, which has arrested more than 350 suspects in the past year, with over 150 cases already in court.

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“We have successfully de-risked and sanitised the mining environment, making it conducive to foreign direct investment,” Alake said.

Push for regional energy and mining corridors

Beyond domestic reforms, Nigeria is pushing for broader African cooperation to strengthen the continent’s role in global mineral supply chains.

Alake urged the United States and African governments to support the development of regional energy hubs and industrial corridors to power cross-border mining operations and local processing.

He pointed to existing infrastructure initiatives such as the Lobito Corridor as models that could be replicated across the continent.

Similar corridors, he said, could be developed along the Lagos–Abidjan Corridor in West Africa and the Walvis Bay Corridor in Southern Africa to support mining, manufacturing and regional trade.

Nigeria attracts $2.6bn mining investment, pushes Africa energy corridors

According to him, shared energy infrastructure, including large-scale power projects, could support multiple countries within a corridor, reducing costs and encouraging local mineral processing rather than exporting raw materials.

“If three to five such corridors are developed in Africa, we would significantly advance industrialisation across the continent, creating a win-win outcome for both Africa and the West,” he said.

Reforms aimed at diversifying Nigeria’s economy

Nigeria has long relied on oil for government revenue, but the sector’s volatility and declining production have pushed authorities to accelerate efforts to diversify the economy.

Mining, which contributes less than one per cent to GDP, has been identified as a priority sector due to Nigeria’s deposits of lithium, gold, tin and other critical minerals.

Alake said reforms introduced over the past two and a half years now guarantee secure tenure for mining licences, a key demand from investors who require long-term stability before committing capital to exploration and processing projects.

To further attract investment, the government is offering tax waivers on imported mining equipment, allowing full repatriation of profits after taxes and royalties, and expanding access to certified geological data to reduce exploration risk.

U.S. lenders signal interest, but warn on stability

At the same event, Sarah Whitten of the Export-Import Bank of the United States said American financial institutions are willing to support mining projects in Africa, particularly those linked to the energy transition, but stressed that political stability and consistent policies remain critical.

“American banks are ready to support projects, but our role is to catalyse and unlock private sector capital,” she said.

The discussion also included government officials and executives from mining investment firms and technology companies, reflecting growing international competition for access to Africa’s mineral resources as countries race to secure materials needed for clean-energy technologies.