Nigeria and the United States have signed an agreement aimed at increasing American investment in Nigeria’s mining sector.
Nigeria’s Ministry of Solid Minerals Development announced the deal on Thursday.
The agreement seeks to attract US investment into Nigeria’s mineral resources while supporting more local processing and job creation.
Nigeria has significant deposits of lithium, gold, tin, iron ore, gemstones and phosphate.
Nigeria-US mining deal signed in New York
Nigeria’s Solid Minerals Minister Dele Alake and US Deputy Secretary of State Christopher Landau signed the framework in New York.
The signing took place on Wednesday on the sidelines of the United Nations General Assembly.
Nigeria’s ministry described it as a framework for American investment in the country’s mineral resources.
According to the ministry, the government-to-government relationship will provide a foundation for direct business deals between Nigerian and American companies.
Nigeria wants more minerals processed locally
Nigeria is seeking investment that goes beyond extracting and exporting raw minerals.
Alake said the country wants to capture more of the economic value generated by its natural resources.
“Nigeria cannot remain a source of raw materials while others capture most of the value,” he said.
The minister called for more local processing, skilled jobs and opportunities for Nigerian businesses.
Many mineral-rich African countries export resources before they are processed into higher-value products.
Nigeria hopes greater domestic processing can allow more of that value to remain inside the country.
Lithium attracts international interest
Lithium is among the Nigerian minerals attracting growing international attention.
The mineral is widely used in rechargeable batteries, including those used in electric vehicles and energy-storage systems.
Nigeria’s lithium deposits have already attracted foreign investors, including Chinese companies.
Meanwhile, the United States has been seeking to strengthen and diversify its critical-mineral supply chains.
That effort has become increasingly important as China plays a major role in global critical-mineral production and processing.
US investment strategy shifts in Africa
The agreement also comes as Washington places greater emphasis on commercial investment and economic partnerships in Africa.
The Trump administration has reduced parts of US foreign assistance while promoting investment deals with African governments.
Nigeria, Africa’s most populous country, is seeking to use that interest to expand its mining industry and reduce its dependence on raw mineral exports.
However, the framework itself does not guarantee individual mining projects or investment amounts.
Its impact will depend on the business agreements and projects that follow.