Nigeria has signed a mineral exploration framework with the United States, opening its estimated $700 billion solid minerals sector to American investors
Deal signed on sidelines of UN General Assembly
The agreement was signed in New York by Nigeria’s Minister of Solid Minerals Development, Dele Alake, and US Deputy Secretary of State Christopher Landau, targeting cooperation in mineral exploration, development, processing, infrastructure and technical capacity building.
Alake had earlier told investors on the sidelines of the UN General Assembly that Nigeria’s mineral deposits are valued at over $700 billion, with far more still undiscovered.
“Nigeria is endowed with a vast deposit of minerals critical to our new world,” he said, adding that the country was “well-positioned to play an important role” as global demand for critical minerals grows alongside the shift to electric vehicles and renewable energy.
Sani calls for transparency, warns of long-term risk
Reacting to the deal on X, Sani welcomed the agreement but said its details should have been made public earlier for lawmakers to review.
“The reported signing of a $700 billion mineral exploration deal between Nigeria and the US on the sidelines of the UN General Assembly is a commendable achievement,” Sani said. “But the details of the deal should have been earlier made public for at least parliamentary scrutiny; that would ensure our national interests and the interests of the host communities are well protected.”
He stressed that the agreement carries implications beyond economics.
“A mineral deal is not just an economic issue but also a sovereignty issue that must be treated seriously,” he said.
Security concerns over bandit-hit mining communities
Former Kaduna Central senator Shehu Sani is demanding the deal face parliamentary scrutiny before it proceeds further. also flagged the security situation in areas rich in lithium, gold, rare earth minerals and uranium, many of which are affected by banditry.
“Taking cognisance of the fact that most of the communities that host these precious minerals like lithium, gold, rare earth and uranium are infested by bandits, security issues must be factored,” he said, adding that the deal “should not just be a swap to replace the Chinese miners or appease anyone.”
He warned that agreements with major powers are difficult to reverse.
“When you sign a deal with a superpower, you can’t easily ‘unsign.’ This is a deal where even the unborn generation are chained to it,” Sani said.
ANN/ Reuters/ Business Insider
