Nigeria’s mining sector may be on the verge of a long-awaited transformation as two key institutions, the Solid Minerals Development Fund (SMDF) and the National Association of Securities Dealers (NASD) have struck a deal to bridge funding and technical gaps that have held back the industry for decades.
The partnership, announced during the 10th Nigeria Mining Week in Abuja, is designed to channel both domestic and foreign investment into mining through the capital market, potentially unlocking an estimated $700 billion in untapped mineral wealth.
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Speaking at the event, the Executive Secretary of SMDF, Fatima Shinkafi, represented by Technical Adviser Abdulmajeed Amussah, said the collaboration between the two institutions marks a turning point in efforts to reposition the mining sector as a key driver of Nigeria’s economic diversification.
In a presentation titled “NASD–SMDF Collaboration: Accelerating Nigeria’s Mining Sector,” Mr Amussah said the partnership would merge the technical and regulatory expertise of both organisations to help mining firms access structured funding through the capital market.
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“The collaboration will provide structured financing and market-based solutions to move mining projects from exploration to production,” he said. “It will also attract both local and international investors to Nigeria’s largely underexplored mineral sector.”
Under the arrangement, the SMDF will oversee due diligence on technical, environmental, and financial compliance, while NASD will facilitate investor access through its Digital Securities Platform (DSP) and other SEC-approved platforms.
Mr Amussah noted that despite the presence of valuable minerals across all 36 states and the FCT, the mining industry’s contribution to the GDP remains minimal due to limited capital inflow and weak data transparency.
“With the right tools and transparency, Nigeria can emulate countries like Botswana and Australia in turning mineral resources into sustainable economic growth,” he said.
He added that the collaboration would serve as a strategic convergence point for key players across the mining ecosystem including regulators, operators, investors, and service providers to align towards a sustainable and profitable value chain.
The partnership will also create structured investment pathways for mining companies, particularly new license holders, enabling them to raise funds through NASD’s digital platforms with stronger governance and investor confidence.
While the NASD functions as a capital market infrastructure for private securities trading in Nigeria, the SMDF is a government-backed fund established to drive financing and development in the solid minerals sector.
Analysts say the partnership could mark a significant shift in how Nigeria’s mining projects are financed combining capital market discipline with development finance oversight to attract global investors and unlock the full potential of the nation’s vast mineral deposits.
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