Stakeholders seek investment, security reforms to unlock Nigeria’s $700bn mineral wealth

Stakeholders in Nigeria’s mining industry have called for increased investment, improved security and regulatory clarity to unlock the country’s estimated $700 billion mineral wealth and expand the sector’s contribution to economic diversification, job creation and revenue generation.

The stakeholders made a call at the opening of the 11th edition of Nigeria Mining Week in Abuja, where industry leaders, government representatives, investors and international partners discussed measures to attract capital and develop commercially viable mining projects. The stakeholders identified insecurity along mining corridors, regulatory overlaps, infrastructure constraints and poor coordination among government agencies as challenges limiting investment in the sector.

They called for reforms to address these issues and create a predictable operating environment for mining companies and investors. Dale Ayanleke, president of the Miners Association of Nigeria, said the gathering of local and international stakeholders would promote the exchange of ideas, technology and investment needed to develop the industry.

Ayanleke said partnerships could help the mining sector provide an alternative source of economic growth and reduce Nigeria’s dependence on oil. “The coming together of different stakeholders, not only within Nigeria but from outside, will lead to a convergence of ideas, technologies and investment, which will make the industry grow,” Ayanleke said.

He added that a developed mining sector could provide an alternative platform for economic growth and create wealth for Nigerians. However, Ayanleke identified insecurity along mining corridors as one of the major barriers to investment, saying the government needed to address the problem to improve confidence in the sector.

He also cited regulatory confusion between the Federal Government and some subnational authorities as a source of uncertainty for mining operators and prospective investors. According to him, stakeholders need to agree on a regulatory framework that clarifies responsibilities, reduces conflicting requirements and provides investors with a predictable operating environment.

Ayanleke said a clearer regulatory system would help investors understand the conditions under which they would operate, including revenue obligations and potential returns on investment. He said the economic benefits of Nigeria Mining Week would be difficult to quantify because they extended beyond measurable revenue and investment figures to include social benefits that might not be captured in conventional economic statistics.

On a recent mining incident, Ayanleke said the government had established a committee to investigate the matter and urged stakeholders to await its findings. Cyril Azobu, partner and mining industry leader at PwC Nigeria, said Nigeria needed to convert its mineral resources into bankable projects capable of attracting investment and generating economic value.

Azobu said Nigeria Mining Week had, over the past 11 years, provided a platform for discussions and partnerships aimed at developing the sector. Following the event’s 10th anniversary last year, he said the priority should now be to translate the progress made and the opportunities available into investment and sustainable growth.

This year’s theme, “Unlocking Investment and Growth through Partnerships,” highlights the need for cooperation among government, mining companies, investors, financiers, host communities and development partners to attract capital and develop viable projects. Azobu said Nigeria’s mineral resources alone would not guarantee the development of a competitive mining industry without the right investment conditions.

He pointed to growing international interest in Nigeria’s critical minerals sector, citing the recently signed critical minerals framework between Nigeria and the United States as an example of a partnership that could connect the country’s resources with investment, technology and expertise.

He also highlighted the need to move beyond exporting raw minerals towards domestic processing and value addition. According to Azobu, Nigeria must develop bankable projects, establish a predictable investment environment and attract investors and financial institutions willing to finance mining operations.

He said PwC would continue to support the sector by helping clients and stakeholders navigate regulatory and operational challenges, structure transactions and adopt sustainable mining practices. He described the firm’s partnership with the Ministry of Solid Minerals Development and the Miners Association of Nigeria in organising the event as an example of the cooperation needed to develop the sector.

Austin Menegbo, country manager of Segilola Resources Operating Limited, said the company’s experience demonstrated that commercial mining was possible in Nigeria when financing, technical expertise, regulatory engagement and community relations were properly managed. Menegbo said Segilola, Nigeria’s first large-scale commercial gold mine, moved from development to first gold production in 2021 and produced 91,910 ounces of gold in 2025.

He added that Nigerians accounted for 99 per cent of the mine’s workforce, with participation from local suppliers and host communities. According to him, the mine has demonstrated that Nigeria can support a commercial mining operation despite challenges involving financing, infrastructure, skills development and stakeholder relations.

However, Menegbo said one successful gold mine would not be enough to transform the industry. Nigeria needs more discoveries developed into producing mines and a pipeline of projects capable of generating returns for investors, jobs for citizens and revenue for the government. He identified regulatory coordination, sustained public-private dialogue, the formalisation of artisanal mining and improved investment conditions as priorities for expanding the sector.

Menegbo said mining companies dealt with several government institutions on issues including land access, environmental approvals, taxation, immigration, power, trade and community relations. While investors could manage strict regulatory requirements, he said overlapping mandates, unclear approval timelines and conflicting directives increased uncertainty.

He called for better coordination among ministries, departments and agencies, clear approval procedures, transparent timelines and mechanisms for resolving disputes between government institutions. Read also: Kano/Jigawa Customs generates over N100bn in 9 months, Free Trade Zone contributes N50bn Such reforms, he said, would not require weaker regulation but a system that was clearer, faster and more effective.

Menegbo also called for a permanent public-private dialogue platform that would meet throughout the year, monitor agreed actions and identify challenges affecting mining operations. On illegal mining, he said enforcement was necessary, particularly against criminal networks and those financing or benefiting from unlawful operations.

However, he argued that enforcement alone would not bring artisanal and small-scale miners into the formal economy. He called for technical and safety training, access to geological information and markets, cooperative structures, financing and alternative livelihoods for people in areas where mining could not be conducted safely or legally.

Menegbo said a mineral deposit could become a producing mine only when financing, infrastructure, security, skills, technology, reliable energy and community support were in place. He called for better access to geological data, exploration financing, technical training, local suppliers and infrastructure that could serve mining clusters rather than individual projects.

He added that environmental management, worker safety and community engagement were necessary to sustain mining investments. “Segilola has shown that this can be done. Our responsibility now is to make the path clearer for the projects that should follow, not by lowering the bar, but by making the rules coherent, processes predictable and partnerships real,” Menegbo said.

Anna Westerholm, Sweden’s ambassador to Nigeria, said mining partnerships should focus on domestic processing, skills transfer, workers’ safety, community welfare and transparency in mineral supply chains. She began her address by remembering people who had died in mining incidents, stressing that mining should not cost lives.

Westerholm cited the relocation of Kiruna, a mining town in northern Sweden, as an example of the long-term relationship between mining companies and host communities. The town is being relocated as mining activity expands and threatens the ground beneath existing buildings. She said the experience demonstrated that mining companies had responsibilities beyond mineral extraction.

“The licence that matters the most is the trust of the community,” she said. Westerholm said Sweden produces about 19 per cent of the iron ore mined in the European Union and has adopted technologies, including battery-electric equipment and automation, to reduce workers’ exposure to dangerous conditions.

She acknowledged that Sweden continued to face disputes over mining permits, environmental protection and the rights of the Sami, the country’s indigenous people. She said Sweden was willing to share its experience, including mistakes, with Nigeria. Westerholm identified value, people and trust as three areas that should guide mining partnerships.

On value addition, she said Nigeria needed to ensure that mining investments developed domestic processing capacity and transferred skills and technology that would remain in the country beyond individual projects. She cited the Geological Survey of Sweden’s training of more than 200 professionals across six African countries in mine-water and mine-waste management as an example of the expertise available to support responsible mining.

On community welfare, she said mining operations should protect workers and contribute to the development of host communities. She noted that Nigerian law requires holders of mining leases to enter into community development agreements with their host communities, describing the agreements as an important element of responsible mining.

She added that Swedish companies were expected to follow the OECD Guidelines for Multinational Enterprises and the United Nations Guiding Principles on Business and Human Rights in their operations at home and abroad. Westerholm also highlighted the growing importance of traceability in mineral supply chains, saying international markets increasingly required evidence of where minerals were extracted, who produced them and under what conditions.

She pointed to the European Union’s battery regulatory framework and its due-diligence requirements as evidence of the need for greater transparency in the sourcing of minerals used in batteries. According to her, Nigeria could improve its access to international markets by strengthening systems for tracing minerals from extraction to processing and sale.

Westerholm said Sweden was ready to support Nigeria through technical cooperation, business partnerships and access to expertise. She noted that Business Sweden opened its first trade office in West Africa in Lagos last year and had brought a delegation of Swedish companies to explore opportunities for cooperation with Nigerian businesses and institutions.

She added that Sweden, through its embassy, Business Sweden and its engagement with the European Union, would continue to support cooperation with Nigeria on mineral development and trade. The conference highlighted the need to address security, regulation, financing, infrastructure and community relations to turn Nigeria’s mineral resources into producing assets.

The stakeholders also stressed the importance of moving from raw-mineral exports to domestic processing, developing local technical capacity and increasing the participation of Nigerian businesses in the mining value chain. For investors, a predictable regulatory environment and commercially viable projects remain central to investment decisions.

For the government, the challenge is to provide security, coordinate regulatory agencies and improve the infrastructure required to support mining operations. Mining companies, in turn, must demonstrate that commercial returns can be achieved alongside environmental protection, worker safety and benefits for host communities.

Nigeria’s ability to develop its estimated $700 billion mineral wealth will depend on how effectively the government and industry address these constraints and turn commitments into projects. As Nigeria Mining Week enters its second decade, the priority is to translate discussions into action, attract investment into viable projects and expand the sector’s contribution to jobs, exports and economic diversification.

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