Over USD 2.6 billion in Foreign Direct Investment (FDI) for the mining sector has been pooled by Nigeria in the last two and a half years. This has been updated during the Powering Africa Summit in Washington by Solid Minerals Development Minister Dele Alake.

As pointed out by Alake, recent inflows, which were a result of reforms, are designed to make the sector more appealing to investors. These included a more robust regulatory framework, digitised licensing and better protection of mineral rights. Moreover, the authorities pushed efforts against illegal mining, leading to over 350 arrests in just one year.

He added, “We have successfully de-risked and sanitised the mining environment, making it conducive to Foreign Direct Investment (FDI).”

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The region’s mining sector, holding a very nominal place in Nigeria’s economy, is deemed to have untapped potential, especially when it comes to lithium, rare earths, tin and copper. While artisanal mining still plays a big role, the government is now focusing on this sector as part of a strategy to gradually industrialise and increase revenue.

Back in July 2025, the launch of the four lithium processing plants was shared by Abuja. However, on March 1, the government sealed a USD 1.3 billion investment agreement with the Africa Finance Corporation aimed at boosting the solid minerals sector. As indicated by the officials, the project, including an alumina refinery, may bring up to USD 25 billion in its lifespan, with additional USD 8 billion in foreign exchange earnings.

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These projects will boost the mining sector's share of the economy to 10 per cent of GDP by 2026, a significant jump from the current 1 per cent, marking it as a strategic move. This ambitious goal is outlined by the Nigeria Extractive Industries Transparency Initiative (NEITI).

Aside from the domestic reforms, Alake further emphasised the urgency for a regional strategy, which shall be encouraging both the African nations and the United States to speed up the creation of energy hubs and cross-border industrial corridors. This initiative aims to bolster mining efforts and ensure a steady supply of essential minerals crucial for the global energy transition.

Projects like the Lobito Corridor and the Lagos-Abidjan Corridor have the potential to boost infrastructure development, enhance energy access and foster regional integration. He mentioned that creating three to five of these corridors would “significantly advance” industrialisation across the continent.

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