By| Goodluck E.Adubazi, Abuja
Nigeria’s solid minerals sector has attracted more than $2.6 billion in foreign direct investment (FDI) within the last two years following sweeping reforms introduced by the Federal Government, the Minister of Solid Minerals Development, Dele Alake, has said.
Alake made the disclosure on Wednesday at the official launch of the Early Stage Mineral Exploration and Research Grants Endowment (EMERGE) programme held at the Transcorp Hilton Hotel, Abuja.
According to the minister, the investment inflow is a direct result of policy reforms aimed at sanitising the mining sector, improving transparency, strengthening regulation, and creating a more attractive environment for investors.
“We promised Nigerians that we would bring credible investors into the sector, and since 2023, the effectiveness of our policy initiatives has enabled us to attract over $2.6 billion in foreign investment into the solid minerals sector,” Alake said.
He noted that the reforms have significantly improved the operating environment and boosted investor confidence, resulting in increased direct foreign investment.
The minister said the government had adopted a combination of kinetic and non-kinetic measures to combat illegal mining, describing the challenge as part of broader security concerns linked to banditry and economic sabotage.
Alake explained that artisanal miners are being organised into cooperatives to formalise their operations, improve access to financing, and integrate them into the formal economy.
Those who refuse to comply with the formalisation process, he said, face enforcement actions through specialised security structures established to tackle illegal mining activities.
The minister also highlighted the success of the government’s gold value-chain initiative, which involves purchasing locally mined gold in naira, refining it to international standards, and selling it to the Central Bank of Nigeria (CBN).
According to him, the programme strengthens Nigeria’s foreign reserves without relying on foreign exchange to acquire gold.
“The gold is sourced locally, refined to international standards and sold to the Central Bank of Nigeria. This increases Nigeria’s reserves while creating a sustainable cycle that benefits the economy,” he said.
Alake described the launch of EMERGE as a major milestone in the Federal Government’s drive to reposition the mining industry as a key pillar of economic diversification under President Bola Ahmed Tinubu’s Renewed Hope Agenda.
He said the initiative would provide funding for early-stage mineral exploration and research, helping to generate the critical geological data needed to attract investors and unlock the country’s vast mineral potential.
The minister stressed that reliable and internationally certified geological data remains essential for investment decisions, noting that only about five per cent of Nigeria’s landmass has been comprehensively explored despite the discovery of more than 44 mineral resources, including lithium, gold, copper, bauxite and rare earth elements.
Alake further revealed that the proposed Nigerian Solid Minerals Company, conceived under the ministry’s seven-point agenda, has moved from concept to implementation.
The company, he said, is designed as a commercial vehicle that will enable the Federal Government to take equity positions and partner with serious investors, similar to the successful Nigeria LNG model.
He credited President Tinubu’s administration for providing the policy direction and support needed to transform the sector.
Earlier, the Executive Secretary and Chief Executive Officer of the Solid Minerals Development Fund (SMDF), Hajiya Fatima Umaru Shinkafi, said EMERGE forms part of a broader reform strategy aimed at unlocking financing across Nigeria’s mining value chain.
She disclosed that the SMDF, in partnership with the African Finance Corporation (AFC), recently secured funding commitments for a 1.5 million metric tonnes-per-annum alumina refinery project, described as the largest mining investment commitment in Nigeria’s history.
Shinkafi also noted that the Fund has supported the sourcing and delivery of internationally certified, responsibly mined gold to the Central Bank of Nigeria, contributing to national reserves and macroeconomic stability.
She declared that Nigeria is entering a new phase in which mineral resources will increasingly be processed and refined locally rather than exported in raw form.
“The era of exporting our minerals in raw form is gone. We are focused on value addition, industrialisation and building a prosperous economy driven by solid minerals,” she said.
Shinkafi added that EMERGE, alongside other strategic initiatives, would strengthen exploration, project development and local processing, helping to position Nigeria as a leading destination for mining investment in Africa.
The SMDF is mandated to unlock financing for Nigeria’s mining sector, promote job creation, increase the sector’s contribution to Gross Domestic Product (GDP), and support sustainable economic growth.
