The United States government has said its new Critical Minerals Framework with Nigeria will deepen economic relations between both countries while creating opportunities for increased American investment in Nigeria’s mining sector.
The framework was signed on the sidelines of the 81st United Nations General Assembly in New York by Nigeria’s Minister of Solid Minerals Development, Dele Alake, and US Deputy Secretary of State Christopher Landau.
The agreement provides a framework for cooperation in geological data, mineral exploration, mineral development and processing, infrastructure and technical capacity building.
The US Department of State said the agreement would expand opportunities for American companies to participate in Nigeria’s critical-minerals sector while strengthening supply chains for the United States.
Nigeria estimates the value of its mineral resources at about $700 billion and has been seeking greater investment in the sector as part of efforts to reduce dependence on oil revenues.
The agreement, however, does not represent a $700 billion investment by the United States. Rather, the figure refers to the estimated value of Nigeria’s mineral-resource base that the framework is intended to help develop.
Speaking at the signing ceremony, Alake said the agreement marked an important step in Nigeria’s efforts to move beyond the export of raw minerals and develop greater domestic value from its resources.
He said the government wanted increased local processing, skills development, job creation and stronger opportunities for Nigerian businesses across the mineral value chain.
According to the minister, the framework would enable both countries to work together on exploration, processing, infrastructure and technical development.
He added that Nigeria would identify viable projects and work towards attracting investment and establishing commercial partnerships under the framework.
Landau, on his part, described Nigeria as an important partner for the United States and said Washington was interested in strengthening economic cooperation with the country.
He said the agreement could create opportunities for greater prosperity in both countries and strengthen their economic relationship.
The framework comes as the United States seeks to diversify supply chains for critical minerals used in several modern technologies, including electric-vehicle batteries and renewable-energy infrastructure.
Nigeria possesses deposits of several minerals, including lithium, gold, tin, gemstones, iron ore and phosphate. The country has identified the mining sector as an important area for economic diversification and industrial development.
For Nigeria, the agreement is also expected to support efforts to increase value addition within the country rather than exporting minerals in their raw form.
The Federal Government has repeatedly said it wants investors in the mining sector to support local processing, infrastructure development and employment opportunities.
The signing also comes amid growing international interest in Africa’s critical-mineral resources and competition among major economies to secure reliable supply chains.
Officials involved in the agreement have stressed that its implementation will be important in determining its economic impact, with the framework providing the basis for subsequent investments and commercial partnerships.
The latest development therefore represents a new phase in Nigeria-US economic cooperation, with both countries expected to work towards identifying projects capable of translating Nigeria’s mineral potential into investment, industrial activity and jobs.
