Nigeria and US formalize deal to increase US mining investments

Nigeria and the United States have signed a framework agreement to deepen American investment in Nigeria’s $700 billion mineral resources sector, Nigeria’s Ministry of Solid Minerals announced on Thursday.

The accord was signed on Wednesday in New York by Nigeria’s Minister for Solid Minerals, Dele Alake, and US Deputy Secretary of State, Christopher Landau, on the sidelines of the United Nations General Assembly.

The agreement aims to move beyond the export of raw materials, which typically have lower value than refined products. Minister Alake emphasized the importance of local processing, quality job creation, skill development, and expanding opportunities for Nigerian businesses.

Nigeria holds significant deposits of lithium, a key mineral for batteries in the global transition away from fossil fuels, attracting foreign mining interest including from Chinese firms. The US is seeking to secure its supply chains for critical minerals, especially after China imposed export restrictions on rare earths last year.

Other Nigerian mineral reserves include gold, tin, gemstones, iron ore, and phosphate. The ministry stated that the agreement is expected to leverage the Nigeria-US government relationship as a foundation for business-to-business transactions in the mining sector.

Despite past diplomatic tensions between Washington and Abuja, including disagreements over security issues, the two countries have increased military cooperation recently.