Experts have welcomed the Nigeria-U.S. framework agreement on solid minerals, saying it could attract investment, create jobs and increase the sector’s contribution to Nigeria’s economy.
Indeed, the agreement could help reposition the solid minerals sector as a viable alternative source of revenue as Nigeria seeks to reduce its dependence on oil.
The Minister of Solid Minerals Development, Dele Alake, and U.S. Deputy Secretary of State, Christopher Landau, recently signed the framework agreement to encourage American investment in Nigeria’s estimated $700 billion mineral sector.
The agreement, signed on the sidelines of the 81st UN General Assembly, UNGA81, also seeks to strengthen economic cooperation between Nigeria and the U.S. and promote value addition across the mineral value chain.
Economic expert, Dr Abdussalam Kani, said the agreement could help reduce poverty in mineral-rich communities by creating direct and indirect employment.
Kani, Principal Consultant of NexGen Consult Solutions Ltd., said increased employment could also improve security, particularly in northern Nigeria, while expanding the country’s revenue sources.
He, however, urged the government to ensure transparency and accountability in implementing the agreement and make its provisions public.
“There is a need to carefully assess the Memorandum of Understanding, MoU, to ensure compliance, and to ensure conformity with existing laws in Nigeria,” he said.
Kani also called for mineral-producing communities, particularly in northern Nigeria, to have a defined role in the agreement.
“There should be a particular component detailing the corporate social responsibility, detailing the communities that are going to be affected, and the measures to be taken in the form of compensation,” he said.
Investment expert, Mr Fife Banks, described the agreement as potentially significant, but said its value would depend on what Nigeria ultimately gained from the framework.
Banks, Chief Executive Officer of Brave Investment Global urged Nigeria to take advantage of rising global demand for critical minerals to secure greater domestic value from the partnership.
He said the framework could attract private capital but should also deliver processing capacity, technology transfer, jobs and greater participation by Nigerian businesses.
Banks said Nigeria’s objective should extend beyond attracting capital to retaining more economic value through domestic processing and beneficiation, technology transfer, skills development and quality employment.
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Dr Abdullahi Jabi, Chairman of the North Central Zone of the Campaign for Democracy, Human Rights Advocacy Civil Society of Nigeria, said the agreement could promote trade and create shared economic opportunities.
Jabi said the deal could support the development and marketing of products derived from raw materials available across the country, particularly in northern Nigeria.
He said the development could create jobs in the formal and informal sectors, facilitate skills transfer and encourage the adoption of modern technology and equipment.
“It is going to be a win-win situation for the Federal Government because the oil market now is diminishing.
“They should be looking for alternative sources of revenue which will have potential like the mining sector,” he said.
Jabi also said the agreement could strengthen investor confidence, encourage compliance with ethical practices and create more employment opportunities.
Bala Wunti, Chief Executive Officer of the World Energy Council Nigeria, said Nigeria needed reliable geological data, credible buyers and other conditions to attract private capital to its critical minerals sector.
Wunti spoke at the 2026 Concordia Annual Summit in New York during a panel titled, “Rare Currency: Critical Minerals in a Shifting Global Economy.”
He said African countries needed to move beyond supplying raw materials and position themselves as competitive partners in processing and manufacturing within the emerging global critical minerals economy.
NAN
