Nigeria and the United States signed an agreement on the sidelines of the U.N. General Assembly on September 24 to expand American investment in Nigeria’s $700 billion mining sector. The $700 billion represents an estimate of Nigeria’s mineral resources and not a $700-billion investment commitment by the United States. Public information on the framework agreement is limited, with details on specific projects, financing commitments, mineral volumes, and pricing yet to be disclosed.
The Trump administration is looking to build an independent supply chain for critical minerals and rare earth metals needed for the high-tech industry, clean energy systems, and defense applications. Partnering with the United States is expected to help Nigeria sell its minerals globally. Nigeria is Africa’s most populous nation and rich in energy and mineral resources. The agreement, signed with Deputy Secretary of State Christopher Landau, covers geological data and exploration, mineral development and processing, infrastructure, and technical capacity.
In June, the Nigerian government announced the discovery of platinum metals, gold, nickel, copper, lithium, and rare earth elements in Kaduna State, in the country’s northwestern region. The area contains high-grade deposits of strategic minerals needed for clean energy technology and advanced manufacturing. Lithium and other battery materials are in demand as essential components in batteries that power electric vehicles, energy storage systems, and renewable energy infrastructure. A private company, Steron Mining, discovered the deposit, and the Nigerian Geological Survey Agency verified it, which could boost the nation’s position in the global race for critical rare earth minerals. Nigeria also has significant deposits of tin and columbite-tantalite, bauxite, and manganese, as well as gold, iron ore, lead-zinc, and phosphate.
According to Steron Mining, its Abuja-area operation holds approximately 3.3 million metric tons of lithium reserves. Company geologists say the broader project hosts an estimated 94.8 million metric tons of mineral resources, including lithium-bearing ore and granitic rock.
Nigeria aims not only to be a source of raw materials but also to increase local processing, skills development, job creation, and Nigerian businesses’ participation in the critical minerals value chain. Onshoring mineral refining could create local jobs, as Nigeria has largely exported ore. The countries expect to turn the framework agreement into projects, investments, and results in the coming months. These goals come as Nigeria’s mining sector remains hindered by safety concerns and environmental challenges.
Nigeria, Africa’s largest oil producer, faces significant structural challenges in diversifying its economy away from oil and strengthening its mineral industries. Industry cautions that significant hurdles remain before discoveries can translate into large-scale production. Infrastructure constraints, power shortages, artisanal mining, and regulatory challenges continue to weigh on Nigeria’s mining development.
Nigeria’s lithium potential, however, has attracted growing international interest. Nigeria reestablished a strategic partnership with China in 2024 and signed agreements on trade, economic cooperation, technology, and investment. Chinese companies, including Jiuling Lithium and Canmax Technologies, have committed more than $1.3 billion toward processing facilities in the country, including Kaduna State, and foreign investors continue to acquire exploration and mining licenses in several states.
Conclusion
Nigeria, Africa’s largest oil producer, has recently found $700 billion worth of mineral resources, including platinum metals, gold, nickel, copper, lithium, and rare earth elements in Kaduna State, in the northwestern region of the country, needed for the high-tech industry, clean energy systems, and defense applications. The United States has signed a framework agreement with Nigeria to expand American investment in Nigeria’s mining industry toward building an independent supply chain for critical minerals and rare earth metals. The agreement seeks to pair U.S. expertise with Nigerian resources to benefit both nations. Nigeria wants not only to supply raw materials but also to increase local processing, develop skills, create jobs, and increase Nigerian businesses’ participation in the critical minerals value chain. Significant hurdles, including Infrastructure constraints, power shortages, artisanal mining activity, and regulatory issues, challenge that development.
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