Nigeria, US Sign Framework to Expand Mining Investment

Nigeria and the United States have agreed to expand American investment in Nigeria’s mining sector, according to Nigeria’s minerals ministry.

Dele Alake, Nigeria’s minister for solid minerals, and Christopher Landau, the US deputy secretary of state, signed a framework in New York on Wednesday on the sidelines of the United Nations General Assembly.

The ministry described the document as a framework for American investment in Nigeria’s mineral resources, which it valued at $700 billion. It said the arrangement is expected to use the relationship between the two countries as a basis for business-to-business transactions.

Focus on domestic value

Alake said the proposed investment should extend beyond exporting unprocessed materials. “Nigeria cannot remain a source of raw materials while others capture most of the value,” he said.

He added: “We want more local processing, quality jobs, stronger skills and greater opportunities for Nigerian businesses.”

Nigeria has deposits of lithium, gold, tin, gemstones, iron ore and phosphate. Its lithium resources have attracted interest from foreign mining companies, including Chinese firms. Lithium is a major component in batteries and is considered important to the global shift away from fossil fuels.

The framework does not set out, in the information released by the ministry, specific projects, investment amounts, timelines or implementation arrangements.

Competition for critical minerals

The agreement comes as the United States seeks to strengthen its supply chains for critical minerals. Chinese companies have more established positions in African markets, while many mining industries across the continent remain focused on exporting raw materials.

That dependence on raw exports has been identified as a challenge for economic development because countries producing minerals may capture less value than businesses involved in processing and manufacturing.

Nigeria’s minerals ministry said the new framework is intended to help create a channel for increased commercial activity between Nigerian and American businesses. The expected outcome remains dependent on the development of investment projects and other steps that were not detailed in the announcement.

The agreement also comes against a backdrop of strained relations between Washington and Abuja. US President Donald Trump last year described violence in northern Nigeria as a “genocide” against Christians, a characterization that independent analysts rejected. The dispute was later followed by increased military cooperation and a deployment of US troops, according to the source material.