Nigeria’s Mining Sector Gains Momentum with $2.6bn Investment Inflow

Nigeria’s Minister of Solid Minerals Development, Dele Alake, has called for the establishment of regional energy hubs across Africa as a key strategy to accelerate mining industrialization and strengthen the continent’s role in the global supply of critical minerals.

Speaking at the Powering Africa Summit in Washington, D.C., Alake said deeper collaboration between African nations and global partners, particularly the United States remains essential to meeting the growing global demand for minerals critical to the energy transition.

He emphasized the need to develop cross-border industrial corridors similar to the Lobito Corridor. According to him, initiatives such as the Lagos–Abidjan corridor, which spans Nigeria, Benin, Togo, Ghana, and Côte d’Ivoire, and the Walvis Bay Corridor, could unlock vast mineral resources while boosting regional integration.

Alake explained that such corridors would serve as economic engines by improving infrastructure, expanding energy access, and enabling industrial growth across borders. He added that shared energy solutions; such as nuclear power, could support multiple countries within a corridor, creating opportunities for local processing, manufacturing, and technology transfer.

“If three to five such corridors are developed across Africa, it would significantly fast-track industrialization and deliver mutual benefits for both Africa and its global partners,” he said.

Highlighting recent reforms under President Bola Ahmed Tinubu, the minister noted that improvements in governance, regulatory frameworks, and licensing processes have made Nigeria’s mining sector more attractive to investors.

He said the government has strengthened the security of mineral titles, ensuring long-term stability for investors, while also expanding the availability of internationally certified geological data to guide investment decisions.

On tackling illegal mining, Alake pointed to the creation of Mining Marshals, revealing that over 350 suspects; including foreign nationals, have been arrested within the past year, with more than 150 currently facing prosecution.

Reaffirming Nigeria’s commitment to attracting foreign investment, he highlighted incentives such as tax waivers on imported mining equipment and the ability for investors to fully repatriate profits after fulfilling tax obligations.

“We have de-risked the sector and created a more transparent environment for investment. In the last two and a half years, Nigeria has attracted over $2.6 billion in foreign direct investment into mining,” Alake stated.

Also speaking at the event, Sarah Whitten of the U.S. Export-Import Bank stressed that sustainable partnerships and long-term policy consistency are critical to unlocking financing for mining projects.

She noted that while American financial institutions are ready to support projects, their role is largely to catalyze private sector investment.

The panel also featured key stakeholders from across the mining and finance sectors, underscoring growing international interest in Africa’s mineral resources amid the global push for clean energy.