Nigeria and the United States have signed a framework agreement to deepen US investment in Nigeria’s mining sector as Africa’s largest economy seeks to develop its mineral resources and reduce its dependence on oil.
The agreement, signed in New York by Nigeria’s Minister of Solid Minerals Development, Dele Alake, and US Deputy Secretary of State Christopher Landau, covers geological data, mineral exploration, mineral development and processing, infrastructure, and technical capacity building.
The partnership forms part of Washington’s efforts to strengthen relationships with mineral-producing countries and diversify supply chains for critical minerals used in electric vehicle batteries and renewable energy technologies.
Nigeria estimates the value of its mineral resources at about $700 billion and is seeking private investment to develop an industry that remains largely underdeveloped. The country’s emerging lithium sector has attracted significant interest from Chinese companies.
Alake said Nigeria wants to move beyond exporting raw materials by increasing local processing and creating more opportunities for domestic businesses.
“Nigeria cannot remain a source of raw materials,” he said, adding that the country is seeking “more local processing, quality jobs, stronger skills and greater opportunities for Nigerian businesses.”
The agreement therefore places mineral processing and domestic value creation alongside exploration and extraction, as Nigeria seeks to build a larger industrial base around its mineral wealth.
Source: Reuters
