Nigeria and the United States concluded a framework agreement in New York on Wednesday valued at nearly $700 billion, aimed at strengthening their cooperation in the mining sector, Nigeria’s Ministry of Solid Minerals Development announced.
The agreement was signed on the sidelines of the 81st session of the United Nations General Assembly by Nigeria’s Minister of Solid Minerals Development, Dele Alake, and U.S. Deputy Secretary of State Christopher Landau.
According to the Nigerian ministry, the partnership is expected to help increase U.S. investment in the country’s mining industry and facilitate business operations between companies from both countries.
"This agreement is expected to build on relations between the Nigerian and U.S. governments to facilitate business-to-business transactions,” the ministry said, as quoted by several media outlets.
Focusing on Local Processing
For Abuja, the objective is not limited to attracting new foreign capital. The government also intends to promote greater processing of resources within Nigeria.
"We want more local processing, quality jobs, stronger skills and better opportunities for Nigerian businesses,” Dele Alake said at the signing.
This approach is part of Nigeria’s efforts to further develop its mining value chain in order to capture a greater share of the revenues generated by its natural resources.
Lithium at the Heart of the Stakes
Nigeria has significant mineral reserves, including lithium, which is particularly sought after for battery manufacturing. However, the sector remains marked by a strong presence of Chinese companies in the exploitation of this resource.
The country also has deposits of gold, tin, iron ore and phosphate, resources that could attract greater international investment amid global competition for strategic minerals.
For both Washington and Abuja, the development of these sectors therefore represents both an industrial and strategic interest.
Nigeria Among Six Countries Targeted by the UN
This new cooperation comes as the United Nations announced on Wednesday that it had selected six countries in Africa and Asia, including Nigeria, to receive support aimed at better harnessing their critical mineral resources.
The initiative notably aims to help the countries concerned increase the value created locally from their mineral deposits.
For Nigeria, the agreement concluded with the United States therefore comes within a broader context of repositioning the mining sector. Abuja is seeking to attract more capital, develop local capacities and process a growing share of its resources domestically, rather than limiting itself to their extraction and export.