Solid Minerals reforms critical to Nigeria’s GDP growth, Says Minister

The Minister of Solid Minerals Development, Henry Dele Alake, has said Nigeria’s economic growth depends largely on addressing longstanding challenges in the solid minerals sector, particularly weak geological data, illegal mining, poor infrastructure, informal operations, and limited financing.

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Mr Alake, represented by his Senior Adviser on Mining & Policy, Amira Adamu Waziri, stated this at the NASD-SMDF webinar themed “Unlocking Nigeria’s Solid Minerals Potentials Through the Capital Market,” held on Wednesday.

Despite Nigeria’s vast mineral resources, the minister noted that the sector currently contributes less than one per cent to the country’s GDP.

“The reasons are well known—insufficient geological data, weak infrastructure, informal operations, illegal mining, and a significant financing gap,” Ms Waziri said on behalf of the minister.

“It is this financing gap that today’s conversation seeks to address—by exploring how Nigeria’s capital market can serve as a channel for patient, long-term, and strategic investment in the solid minerals value chain.”

The minister explained that the Ministry has adopted a seven-point agenda to reposition the sector. This includes establishing the Nigeria Solid Minerals Company, setting up the Mines Marshalls to combat illegal mining, acquiring comprehensive geological data, formalising artisanal and small-scale mining, promoting value addition and local processing, attracting large-scale investment, and strengthening stakeholder engagement.

He stressed that the capital market would be critical in mobilising long-term financing for exploration and project development, supporting junior mining firms to raise funds, and channeling institutional capital into infrastructure and processing hubs.

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Mr Alake reiterated that Nigeria stands at the threshold of a mining renaissance:

“We have the mineral resources. We have the political will. What we now require is the capital, technology, and partnerships to unlock this potential. This sector is not just about extracting minerals—it is about building an economy that is inclusive, resilient, and globally competitive.”

Key Presentations

Licensing and Regulation:

Obadiah Simon Nkom, Director-General of the Mining Cadastre Office (MCO), outlined the various types of mining licences and regulatory requirements. He explained that a Mining Lease covers up to 50 km², while Quarry Leases and Small Scale Mining Leases are restricted to 5 km² and 3 km² respectively. He stressed that mining operations are only legal when licensed in line with the NMMA 2007.

Blockchain and Financing Innovation:

In his presentation, Paul Lalovich, Adviser at the Ore Reserve Development Forum, highlighted blockchain adoption as a transformative tool for financing exploration. He announced the launch of a $520 million Digital Future Fund, designed to scale blockchain infrastructure and Web3 adoption across emerging markets.

According to him, the fund aims to generate $180 million in annual revenue by year five, with an expected IRR of 18–22 per cent, while also creating over 800 jobs, training 10,000 professionals annually, and supporting 500 blockchain startups.

“This adaptation positions Nigeria’s mining incubator as a digital FDI catalyst—using real-world asset tokenisation to unlock, grow, and monetise the nation’s mineral wealth with transparency and global investor access,” Mr Lalovich said.

Investment Readiness:

Mining expert and corporate financier Jon O’Callaghan stressed the importance of following the seven stages of a mineral project in sequence — from reconnaissance and licensing to feasibility studies and financing — warning that shortcuts deter investors.

“You cannot jump from licensing straight to production and expect financing,” he said. “Without feasibility studies and proper exploration, investors will not commit funds.”

Closing Remarks

Delivering the vote of thanks on behalf of Mrs Fatima Umaru Shinkafi, Executive Secretary of SMDF, Omotayo Omitokun appreciated the speakers and stakeholders for their contributions. She noted that the insights shared would help deepen capital market participation and unlock sustainable value from Nigeria’s mineral resources.

The webinar, jointly organised by NASD Plc and the Solid Minerals Development Fund (SMDF), is part of ongoing efforts to align Nigeria’s mining sector with global best practices and investment opportunities.