Nigeria and the United States have signed a framework agreement aimed at deepening American investment in Nigeriau2019s mining sector and developing the countryu2019s estimated $700 billion mineral resources.
The agreement was signed on Wednesday at the Nigeria Mission House in New York by Nigeriau2019s Minister of Solid Minerals Development, Dele Alake, and US Deputy Secretary of State Christopher Landau, on the sidelines of the 81st United Nations General Assembly.
Key Highlights
- Nigeria and the United States sign a framework to deepen US investment in Nigeriau2019s mining sector.
- Nigeria estimates its mineral resources at about $700 billion.
- The agreement covers geological data, exploration, mineral development and processing.
- Infrastructure and technical capacity building are also included.
- Nigeria wants to move from exporting raw minerals to local processing and value addition.
- The framework is expected to facilitate government-to-government cooperation and business-to-business investment.
- Both countries are expected to identify viable projects and develop commercial partnerships.
Nigeria Seeks Greater Value From Mineral Resources
Speaking at the signing ceremony, Alake described the framework as a future-oriented agreement that could shape the development of Nigeriau2019s solid minerals sector.
u201cSome agreements manage the present, and some agreements shape the future. The framework we sign today belongs to the second kind,u201d Alake said.
He said Nigeria and the United States shared the objective of developing secure and resilient critical mineral supply chains supported by responsible investment.
The minister stressed that Nigeria wanted to move beyond the export of unprocessed raw materials and retain more economic value within the country through local processing, skills development and job creation.
u201cWe are not here to remain a source of raw material for the value that others create. Our goal is to turn potential into lasting value at home through stronger local processing, new skills, quality jobs, and new opportunities for Nigerian businesses,u201d he said.
According to Alake, the framework will support cooperation in geological data and exploration, mineral development and processing, infrastructure and technical capacity building. He reiterated at the UNGA sidelines that Nigeriau2019s solid mineral deposits are valued at over $700 billion and said the initiative would also support the economic diversification objectives of President Bola Tinubuu2019s Renewed Hope Agenda and contribute to industrial development.
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From Agreement to Investment
Alake said the signing of the framework was only the beginning, stressing that its impact would depend on its implementation.
u201cNow comes the harder and more important work: moving from agreement to implementation. A signature is a promise, results are the proof,u201d he said.
The minister said Nigeria would work with American partners to identify viable projects, mobilise investment and develop commercial partnerships capable of delivering measurable benefits to both countries.
The framework comes as the Federal Government seeks to attract more foreign capital into the mining sector, expand mineral exploration and increase domestic processing capacity. Reuters reported that Nigeria is particularly seeking to develop its largely underdeveloped mining industry, including its emerging lithium sector.
US Pledges Stronger Economic Cooperation
Landau said the United States viewed Nigeria as an important regional power and expressed Washingtonu2019s commitment to strengthening economic cooperation between both countries.
u201cThe signal we are sending is that the United States and Nigeria are partners,u201d Landau said.
He said the agreement would create opportunities for greater prosperity in both countries and reaffirmed US support for Nigeriau2019s economic growth. Landau also said the two countries had made significant progress in their relationship over the previous 18 months under the leadership of President Donald Trump and President Bola Tinubu.
u201cI think we would like to keep building on that momentum,u201d he said.
The agreement is expected to provide a framework for deeper cooperation between Nigeria and the United States in critical minerals, while supporting efforts to develop local value chains, attract investment and reduce dependence on the export of unprocessed mineral resources. Follow us on X for more updates.
