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By Uche Usim
Buried deep in the bowels of the nation are gold, lithium, zinc, tin, iron ore, coal and other treasures waiting to be unearthed.
But the communities where they are found are mostly war-torn zones battling multi-dimensional poverty, a strange contradiction that is hardly tabled in serious conversations.
To change the narrative, Nigeria and the United States, on September 24, 2026, sealed a $700 billion mineral investment deal in New York aimed at unlocking investment in Nigeria’s crime-infested solid minerals sector.
In a nutshell, the pact seeks to transform Nigeria’s raw ore to real wealth, while sacking criminal gangs turning wealth to terror.
Importantly, the $700 billion is an estimate of the potential value of Nigeria’s mineral resources, not a $700 billion investment or cash payment from the US.
The framework covers geological data, exploration, mineral development and processing, infrastructure and technical capacity.
But the journey to freedom is not smooth. It is littered with challenges that have accumulated for generations.
Experts say operationalising such a gigantic deal requires a hard stance on the part of the government to dismantle caustic artisanal mining that has funded crimes for decades.
In some mining areas, the story has been even darker. Abandoned pits, polluted water, damaged farmlands and fatal accidents have become part of the experience of communities that host mining activities.
So, commercial mining will require roads, rail, electricity, water, logistics and processing facilities. Investment in these areas could benefit mining communities and other businesses.
Commenting on the development, an economic analyst and Director General, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf said the world is moving to deepening the utilisation of rare earth minerals to drive energy transition, battery, electric automobile production and much more.
“So it’s good to maximise the benefits now that there is a gradual shift from fossil fuels.
“Again, we need to make the mining space conducive for investors. They want a solid security infrastructure, a good regulatory environment and all that.
“We need to give a lot of geo-mapping information and all that to the investors so that they can take the burden off their shoulders and ultimately build confidence. “This pact is a good start especially when you note that the demand for rare earth minerals has increased and they’re not available in many developed nations that use them.
“It gives Africa some comparative advantage and we need to seize this opportunity to grow the economy”, he said.
Critical minerals are increasingly important for batteries, renewable-energy infrastructure and other technologies. Greater US involvement could put Nigeria more firmly into global mineral supply chains.
The new deal seeks to drive home a key point, which is that extracting minerals from Nigeria should no longer be enough. Mining companies must contribute to the development of the communities where they operate, while more of the minerals extracted should be processed within the country to create jobs and financially nourish the economy.
The policy direction is being driven by the Minister of Solid Minerals Development, Dr Dele Alake, as the Federal Government combines tighter regulation at home with efforts to attract large-scale foreign investment.
One of the biggest moves is the government’s decision to go after mining companies that fail to fulfil their obligations to host communities.
Under the Community Development Agreement, CDA, mining operators are expected to provide agreed benefits to communities affected by their activities. These can include schools, healthcare facilities, water projects and other social infrastructure.
But compliance has been a major concern. The government has, therefore, directed officials to identify companies that have failed to sign or implement their CDAs. Those that do not comply risk losing their mining licences.
The policy reflects a recognition that communities should not be tortured with the horrific sight of mega vehicles trucking out minerals from their ancestral lands while receiving little in return.
Worse, they suffer environmental poisoning which takes harsh tolls on their lives.
Mining pits can become death traps when they are abandoned or poorly managed.
Recent accidents, including fatal pit collapses, have again drawn attention to the risks faced by people living and working around mining sites.
The government’s position is that mining licences should come with responsibilities.
In other words, access to Nigeria’s mineral wealth should be tied to obligations to the people and environment around the mining site.
The US is seeking stronger critical-mineral supply chains, while Chinese companies have already been active in parts of Nigeria’s mining industry, particularly lithium.
This gives Nigeria bargaining opportunities, but also means it must carefully manage competing foreign interests.
The $700bn opportunity
While the government is tightening the rules for existing operators, it is simultaneously opening the door wider to serious investors.
Alake signed the agreement with United States Deputy Secretary of State, Christopher Landau, at the Nigeria Mission House.
The government has estimated the potential value of Nigeria’s solid minerals sector at about $700 billion. The figure represents the enormous economic opportunity that could arise if the country develops its mineral resources properly, attracts investment and builds the infrastructure required to process minerals locally.
But the Federal Government does not want a repeat of the old model in which Nigeria simply digs up its resources and exports them as raw materials.
The new emphasis is on value addition. This means that instead of exporting raw lithium, gold or zinc and buying back expensive finished products, Nigeria wants to develop processing facilities that can turn these minerals into products with higher economic value.
That shift could have implications far beyond the mining industry.
Local processing means more factories, more skilled workers, more technical expertise and more opportunities for Nigerian businesses to supply goods and services to the industry.
It could also increase government revenue.
As Alake has argued, Nigeria cannot afford to remain a supplier of raw materials while other countries make most of the money from processing and manufacturing.
The development of lithium processing capacity in Nasarawa State is an example of the direction the government wants the sector to take.
The wider objective is to create an industry in which minerals extracted in Nigeria generate more economic activity before they leave the country.
Cleaning up the licensing system
The government’s mining reforms have also involved a major review of existing licences.
So far, 1,633 dormant or defaulting mining licences have reportedly been revoked.
The exercise is designed to tackle a longstanding problem in the sector, which is mineral-rich areas being tied up by licence holders who neither develop the sites nor contribute meaningfully to production.
For the government, such arrangements deny serious investors access to mineral deposits and encourage speculation.
By withdrawing inactive licences, the authorities hope to create room for investors willing to commit capital, technology and expertise to actual mining operations.
But licensing alone will not transform the sector. The real test will be whether the government can maintain effective monitoring after licences have been issued.
States enter the mining race
Another interesting dimension of the reforms is the increasing role being encouraged for state governments.
States, including those in the South-South region that have traditionally depended heavily on crude oil, are being encouraged to explore the opportunities available in solid minerals.
Through special-purpose vehicles, state governments can obtain mining titles and enter partnerships with investors.
Such arrangements could give states a more direct role in developing mineral resources within their territories.
For states facing pressure to increase internally generated revenue and diversify their economies, mining offers another potential source of income. But it also comes with responsibilities.
Without proper regulation, mining can damage farmland, pollute water sources and create conflicts with host communities.
This makes environmental protection and community participation important parts of the emerging mining strategy.
The money is beginning to show
The government says the reforms are already producing financial results.
Revenue from the solid minerals sector was reported at about N6 billion in 2023. That figure rose to N38 billion in 2024 and N70 billion in 2025.
The sector has also attracted an estimated $2.6 billion in foreign direct investment.
Those figures suggest that the industry is beginning to attract greater attention from investors and government agencies.
But revenue growth alone will not tell the full story. The more important question is whether the expansion of mining will translate into better living conditions for communities, more jobs for Nigerians and stronger local industries.
If more minerals are processed locally, the impact could spread across several sectors, including manufacturing, construction, transportation, engineering and technology.
Beyond the minerals
Nigeria’s mining story has never really been about rocks beneath the ground.
It is about what the country does with the wealth those rocks represent.
For decades, the country’s dependence on crude oil demonstrated the danger of relying heavily on the export of raw natural resources. The solid minerals sector now offers an opportunity to pursue a different path.
But that opportunity will only be meaningful if the value created by mining is retained within the economy.
That means enforcing agreements with mining companies, protecting host communities, closing illegal mining operations, improving geological information, providing infrastructure and ensuring that investors actually develop the areas for which they receive licences.
It also means making communities partners in development rather than treating them as bystanders.
The Federal Government’s current strategy is, therefore, attempting to address three problems at once: cleaning up the licensing system, attracting serious investment and ensuring that more value is created within Nigeria.
The $700 billion mineral potential may be a huge figure, but the real measure of success will be much closer to the ground. It will be seen in the community where a new school replaces an abandoned mining pit; in the factory where Nigerian workers process lithium instead of watching it leave the country as raw ore; in the businesses supplying equipment and services to mining companies; and in the revenue reaching governments.
The bigger challenge is turning those buried resources into lasting wealth without leaving the people and communities above the ground behind.
