Nigeria Lands $1.3B Mining Investment, Eyes $25B GDP Surge & $8B FX Boost — Alake
Nigeria just bagged a massive mining investment deal worth $1.3 billion, and it’s being called the biggest private sector-led mining project in the country’s history. Announced by Minister of Solid Minerals, Dele Alake, at the BusinessDay Mining Conference in Abuja, the project is led by the African Finance Corporation (AFC) alongside the Solid Minerals Development Fund. The expected outcome? A major shot in the arm for the economy—an estimated $25 billion added to the GDP over the project’s lifetime and a much-needed $8 billion in foreign exchange earnings.
According to Alake, this isn’t just talk—it’s already in motion. The Nigerian Mining Company (NMC), which will be 50% privately owned and 25% government-owned, is already set up with leadership in place. The idea is to let private sector efficiency run the show while reducing government interference. The project is designed to build a critical minerals processing facility that’ll deliver about $1.2 billion annually to Nigeria’s economy. It’s also seen as a major endorsement of ongoing reforms in the sector, with Alake describing it as a legacy shift.
He didn’t hold back in calling out past neglect. For decades, Nigeria pretty much ignored its solid minerals sector, missing out on billions in potential revenue while smaller countries like Senegal and Côte d’Ivoire were investing heavily. Alake dropped some eye-opening stats: Nigeria spent just $2 million on exploration, while Côte d’Ivoire dropped $148 million, and even Sierra Leone outpaced us with over $14 million. The neglect, he said, was fueled by overreliance on oil money, leading to a national habit of importing even the most basic goods.
But the tide seems to be turning. Alake credited President Bola Tinubu for stepping up with a serious budget boost for solid minerals, signaling a new era for Nigeria’s economy. With better funding, smarter partnerships, and a push to diversify away from oil, Nigeria may finally be tapping into its long-overlooked mineral wealth. The message is clear: the future of Nigeria’s economy won’t just be in barrels, but in rocks too.
Source: Business day