Nigeria and US sign pact to unlock $700bn mineral resources

Nigeria and the United States have signed a framework agreement to deepen cooperation and attract American investment into Nigeria’s solid minerals sector. The deal, signed in New York during the 81st UN General Assembly, aims to unlock Nigeria’s estimated $700 billion in mineral resources.

Signed by Nigeria’s Minister of Solid Minerals Development, Dele Alake, and US Deputy Secretary of State, Christopher Landau, the agreement focuses on five key areas: geological data sharing, mineral exploration, mineral development and processing, infrastructure, and technical capacity building. The partnership seeks to shift Nigeria’s role from a mere exporter of raw materials to a hub for local processing and value addition.

The agreement comes as international competition for critical minerals, such as lithium used in electric vehicle batteries, intensifies. While Chinese firms currently dominate much of Nigeria’s lithium-processing infrastructure, this framework aims to foster business-to-business transactions and secure resilient supply chains through responsible investment. The initiative is intended to support President Bola Tinubu’s economic diversification agenda by creating jobs and developing domestic manufacturing capabilities.