Nigeria and the United States have signed a framework agreement to expand American investment in the West African country’s mining industry, as Abuja seeks to unlock its mineral wealth and reduce its dependence on oil.
Nigeria’s Minister of Solid Minerals Development, Dele Alake, said Thursday that the agreement was signed in New York a day earlier with US Deputy Secretary of State Christopher Landau.
The partnership covers geological data, mineral exploration, mining development and processing, infrastructure and technical capacity building.
The deal comes as Washington moves to strengthen partnerships with mineral-producing countries and diversify supply chains for critical minerals used in electric vehicle batteries, renewable energy systems and other advanced technologies.
Nigeria estimates its mineral resources to be worth approximately $700 billion but has struggled to attract sufficient investment to develop its largely untapped mining industry.
Alake said the government wants to move beyond exporting raw materials and establish a stronger domestic processing industry that generates employment and creates opportunities for Nigerian businesses.
“Nigeria cannot remain a source of raw materials while others capture most of the value. We want more local processing, quality jobs, stronger skills and greater opportunities for Nigerian businesses,” he said in a statement.
The agreement could also help Nigeria attract new investment into its emerging lithium industry, where Chinese companies have been among the most active foreign investors.
Abuja has increasingly sought to develop its mineral resources as part of a broader effort to diversify government revenue, expand industrial production and reduce the economy’s reliance on crude oil exports.
