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Tony Ailemen, Tope Omogbolagun, Godsgift Onyedinefu, Ladi Patrick-Okwoli and Ojochenemi Onje 

…27000 jobs created in mining sector, says Alake

…Nigeria’s solid minerals attracting global interest -Aigbogun

…NEPC calls for export-driven transformation

The federal government has sealed deals worth $1.3 billion with investors who will set up two lithium factories in Nigeria before the end of the second quarter (Q2) of 2025.

This is as various reports confirm that investor confidence is returning to Africa’s biggest oil producer on the back of various monetary and fiscal reforms embarked upon by the government.

Dele Alake, solid minerals minister, said the African Finance Corporation (AFC) and the Solid Minerals Development Fund (MDF) are spearheading the investment.

Lithium is an element used in the production of glass, aluminum products and batteries, according to the United States-based Minerals Education Coalition. Australia and Chile are the world’s largest producers of lithium.

Read also: $1.3b lithium factories set to take off Q2, 2025 — Alake

“This project will contribute about $1.2 billion of economic output annually and over $25 billion during the project’s life cycle. And of course, it will also contribute $8 billion in foreign exchange. This investment is an endorsement of our ministry’s ongoing reforms, and the SNDF and the AFC goals of catalysing private sector-led investments in the soil and minerals sector,” the minister said.

Alake said the planned Nigerian Mining Company (NMC) would be 50 percent owned by the private sector and 25 percent by the government, noting that it would drive the establishment of joint ventures.

“Actually, it is no longer proposed; it is in existence right now because we have a CEO and the company secretary. It has a structure, as we speak. In a very short period of time, it’s going to roll out. So, if the private sector owns 50 percent of that company, you can rest assured that the private sector culture of management will be injected into that company, and it will endure.

“So, in essence, this is designed to limit the influence of the government in the running of this Nigerian mineral company, and that is going to be a legacy that we are leaving behind,” Alake explained.

Low investments

He expressed concern over Nigeria’s historically low investment in the solid minerals sector, highlighting the disparity between Nigeria and smaller African nations in terms of exploration funding.

“For decades, we ignored this very vital sector of the economy,” he noted. Alake said despite the sector’s immense potential, countries like Senegal, considerably smaller in both size and economy, have outspent Nigeria by more than 10-fold on mineral exploration.

Citing recent data, he revealed that at the time the current administration assumed office, Nigeria had allocated just $2 million for exploration activities. In contrast, Côte d’Ivoire had invested $148 million, Senegal approximately $48 million, and Sierra Leone over $14 million.

“Not to mention mining economies such as the Democratic Republic of Congo and Zimbabwe. Nigeria’s spending ranked the lowest, a reflection of decades of neglect and underinvestment in this critical sector,” he stressed.

Alake attributed the oversight to Nigeria’s long-term dependence on oil revenues, stating that for several decades, the country benefited from the free flow of petro-dollars. He stressed that Nigeria ought to be the largest economy in Africa.

“So we shut our eyes to the constructive sectors of the economy, the regenerative sectors of the economy like agriculture, sewing, manufacturing. And we went into a consumption spree because the dollar was coming in. And we were importing everything, including toothpicks and orange juice,” he said.

According to Alake, the efforts of his ministry have continued to yield the much-needed benefit, creating about 27000 jobs for artisanal miners in over 90 mine sites freed by the mining marshals.

He also revealed that Nigeria’s Community Development Agreement CDA) has become a toast among African countries, including South Africa, which are now replicating the Nigerian model developed by the President Bola Tinubu administration and created to benefit the host communities

NEPC advocates export-driven transformation of solid minerals

Meanwhile, Nonye Ayeni, CEO of the Nigerian Export Promotion Council (NEPC), called for a strategic transformation of the solid minerals sector to unlock its export potential.

“This year garners yet another boost towards positioning Nigeria’s solid mineral sector at the heart of sustainable economic growth and diversification,” Ayeni said in a goodwill message delivered by Samson Idowu, NEPC director of solid minerals.

She announced the establishment of a new Solid Minerals Department within the NEPC to drive initiatives such as value addition, export incentives, financing for MSMEs and the creation of mineral clusters.

“From lithium to lead, zinc, gemstone, kaolin, and tantalite—these resources are in high global demand and critical to industries like energy storage, telecommunications, aerospace, and pharmaceuticals,” she stated.

However, Ayeni acknowledged challenges such as insufficient infrastructure, access, and regulatory hurdles.

“We must confront these challenges head-on. That is why we are aligning our strategies with priority minerals that have strong global market potential,” she added.

Read also: Nigeria secures major mining investment, targets $25bn GDP boost, $8bn FX Alake

Women in mining call for stricter law enforcement

Janet Adeyemi, national president of the Women Miners Association of Nigeria (WMIN), stressed the importance of enforcing mining regulations to prevent environmental degradation.

“Before any mining activity commences, companies must submit the Environmental Impact Assessments (EIAs), as required by law,” she said. “This is critical to protecting host communities.”

Adeyemi recommended mandatory submission of Environmental, Social, and Governance (ESG) reports and urged Nigeria to adopt a framework similar to the U.S. Water Infrastructure Act to enhance water system safety and resilience.

“The only sustainable solution is the consistent enforcement of regulations and public education on the harmful impacts of illegal mining,” she said. “Investors are now more interested in countries with robust legal frameworks and environmental safeguards.”

Nigeria turning the corner, says Aigbogun

Frank Aigbogun, publisher of BusinessDay Media Limited, offered an optimistic outlook, saying that the rising mining activities and investor interest show that Nigeria is ‘turning the corner.’

“Yes, you don’t see it on the streets yet, but it’s happening,” Aigbogun, who was represented by Tayo Fagbule, BusinessDay editor, said.

“We talk to people booking plane tickets, investors returning, and hotel rooms filled with expatriates.”

He stressed the importance of acting on optimism. “This conference is not just about policy talk. It’s about actionable steps to unlock Nigeria’s vast mineral wealth. We haven’t even scratched the surface,” he further said.

“Solid minerals could very well become Nigeria’s next economic pillar. It’s time to go from dialogue to delivery.”

Rising investor confidence

Business confidence in Nigeria has risen for the third straight month in 2025 in April as the federal government reforms continue to raise optimism in the economy, according to the latest NESG-Stanbic IBTC Business Confidence Monitor (BCM).

The BCM, a flagship survey-based report by the Nigerian Economic Summit Group (NESG) in collaboration with Stanbic IBTC, shows that the Business Performance Index for March 2025 stands at +6.58.