Deposit Of Mineral Goods In Nigeria currently Worth $750 Billion — FG

Dele Alake, Minister of Solid Minerals

Dele Alake, Minister of Solid Minerals Development, stated that Nigeria currently has a mineral resource worth $750 billion.

Dele Alake emphasized the government's commitment to transforming Nigeria into an attractive hub for solid minerals investment during a two-day national stakeholders' roundtable in Abuja on Monday, April 29, titled 'Sustainable Development of the Mining Industry in Nigeria' and organized by the National Institute for Policy and Strategic Studies.

He referenced preliminary studies by GeoScan, a German consultancy, that highlighted Nigeria's vast mineral potential. The summit, organized in conjunction with Bruit Costaud, sought to address mining industry concerns and identify feasible solutions.

Alake highlighted the mining sector's substantial potential to drive Nigeria's economic growth, aligning with the current administration's goal of reaching a trillion-dollar economy.

He emphasized the importance of data availability, citing its role in enticing investors eager to develop processing factories in Nigeria. Such enterprises, he stated, would drive job creation and foster economic growth via a multiplier effect.

Alake said, “We are working with the World Bank, Excalibur, and GeoScan, a German company, to get the necessary data on the sector.

“That is why the federal government signed a memorandum of understanding with Geoscan and they did a preliminary survey of our minerals on the output and potential. They gave us a figure of $750 billion worth of minerals embedded under the ground of Nigeria.

“That is a conservative estimate, by the time we conduct a serious, accurate data exploration, we will discover that we have trillions of solid minerals embedded under. So, the president's projection of a one-dollar economy is not a fluke.

“By the time we are done with all of these efforts, input, and policies we are putting in place, trillions of naira will be a child's play and we will be nudging trillions of dollars.”

The minister emphasized the government's clear commitment to a shift away from fossil fuels and toward solid minerals through real measures.

Alake underlined ongoing reforms aimed at renewing the sector, highlighting the importance of minimizing Nigeria's reliance only on raw mineral exports. He emphasized the importance of local processing and conversion activities to ensure added value within the country.

Furthermore, Alake underlined the significance of ensuring that communities where solid minerals are produced reap the greatest benefits from such activities. As part of these changes, he announced the formation of the Nigeria Solid Minerals Corporation, which aims to consolidate efforts in the sector.

Alake said that the Committee on Solid Minerals Development has initiated legislation in the National Assembly to establish the Nigerian Solid Minerals Corporation.

This entity, envisioned as a private sector-led limited liability company, would have a clear mandate to engage in mining activities throughout the value chain, from upstream to downstream, supporting overall sector development.

He stated that the company was expected to provide some of the sector's stability while also stimulating other private sector activity by igniting investment inflows throughout the sector.

In his remarks, Nasarawa State Governor Abdullahi Sule applauded the current reforms and emphasized the importance of private investment in solid minerals for sectoral growth.

He emphasized the potential of lithium, comparing it to gold, and cited Nigeria's abundant supplies of this material.

Sule also stated that the world's largest lithium processing factory would soon be inaugurated, with the capacity to process 4,000 metric tons per day and transport over a million tonnes of lithium annually.

Ayo Omotayo, Director General of the National Institute for Policy and Strategic Studies (NIPSS), stated that the summit was held to map a path forward for the mining sector.

“We must do all we can to take our country to greater heights by ensuring that the critical mining sector contributes its share of a N1 trillion dollar economy in very few years ahead. The question is can we achieve the promise of a trillion-dollar economy if the mining sector performs optimally.”