Nigeria pushes for indigenous control in mining sector

Nigeria’s mining sector is standing at a critical crossroads at one where capital market innovation meets the urgent call for indigenous ownership and sustainability.

At the ongoing Nigeria Mining Week 2025 in Abuja, experts and policymakers agreed that while Nigeria’s legal and regulatory reforms have opened the door for global investment, the next stage of transformation must be locally driven.

Professor Akinade Olatunji, Immediate Past President of the Nigerian Mining and Geosciences Society, described Nigeria’s mining framework as “world-class” but cautioned that without homegrown participation, the country risks repeating the mistakes of its oil sector beginnings.

“Reforms have rekindled interest, both nationally and internationally,” he said. “But transformation won’t come from foreign investment alone. It will come from deliberate policies that create room for Nigerian operators to grow, innovate, and compete.”

Olatunji drew lessons from the oil and gas industry, noting how the 2001 marginal fields initiative birthed indigenous giants such as Seplat, Aradel, and NDWestern.

“What changed then was deliberate policy action,” he recalled. “It created opportunities for local players, built technical capacity, and ensured that ownership stayed within Nigeria. That same kind of intentionality is what the mining sector now needs.”

He also questioned whether global mining firms currently entering Nigeria were committed to long-term development.

“We must ask if these investors plan to stay and integrate into our economy—or just extract and leave. True progress means sustainable partnerships that empower Nigerians at every level of the value chain.”

Another participant added that “mining should no longer be a one-way street for foreign capital. It must be a launchpad for Nigerian-owned enterprises and professionals.”

Amid these conversations on local participation, a new financing model is emerging to power the shift.

Abdulmajeed Amussah, Technical Adviser to the Executive Secretary of the Solid Minerals Development Fund (SMDF), announced a groundbreaking collaboration between SMDF and NASD Plc to unlock access to capital for credible mining ventures.

In his presentation, “SMDF–NASD Collaboration: Accelerating Nigeria’s Mining Sector,” Amussah said the initiative is designed to convert Nigeria’s $700 billion in untapped mineral resources into real, measurable economic growth.

“Despite the enormous potential, mining contributes less than one percent to GDP,” he explained. “The biggest barrier has always been limited access to long-term, risk-tolerant capital. That’s the challenge this partnership seeks to solve.”

According to him, NASD Plc will deploy its capital market infrastructure to create regulated digital financing platforms — such as Digital Securities Platforms (DSPs) and Security Token Offerings (STOs) — tailored to the unique lifecycle of mining projects.

“This innovation ties investment instruments directly to project milestones, ensuring transparency and protecting both investors and operators,” Amussah said.

He added that the collaboration, supported by Dr. Dele Alake, Minister of Solid Minerals Development, and Prince Shuaibu Abubakar Audu, Minister of Steel Development, aligns with the Federal Government’s Renewed Hope Agenda, which focuses on industrialization, local content, and resource-based economic expansion.

“This could mark the turning point Nigeria’s mining sector has been waiting for,” Amussah concluded. “With structured, transparent capital now entering the space, we are closer to turning our mineral wealth into broad-based national prosperity.”

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