The Minister of Solid Minerals Development, Dele Alake, and U.S. Deputy Secretary of State, Christopher Landau, recently signed a key framework agreement to spur American investment in Nigeria's estimated 700 billion dollars mineral sector. The agreement, signed on the sidelines of the 81st UN General Assembly (UNGA81), aims to strengthen economic cooperation between both countries and boost Nigeria's value-addition-driven value chain.
Experts and stakeholders have expressed mixed reactions to the agreement, with some saying it will help reposition the sector and increase its contribution to Nigeria's Gross Domestic Product (GDP), while others demand proper scrutiny of the details of the framework. They emphasize the need for transparency and accountability in implementing the agreement's provisions, particularly in ensuring compliance with existing laws in Nigeria and incorporating affected communities into the agreement.
An economic expert, Dr Abdussalam Kani, said the agreement would stimulate economic growth and reinforce the solid minerals sector as a viable alternative to oil. He noted that the projected employment opportunities would help improve security, especially in the northern region, and boost Nigeria's sources of revenue. However, Kani cautioned that the government must be transparent and accountable in implementing the agreement's provisions.
An investment expert, Mr Fife Banks, described the deal as potentially significant, saying its importance should not be measured by the signing itself but by what Nigeria ultimately achieves through the framework. Banks urged Nigeria to leverage growing global demand for critical minerals to secure greater domestic value from the partnership, including attracting capital, while retaining substantially more economic value through domestic processing and beneficiation.
Dr Abdullahi Jabi, Chairman of the North Central Zone of the Campaign for Democracy, Human Rights Advocacy Civil Society of Nigeria, said the deal would bring fortune and shared prosperity to Nigerians. He expressed confidence that the development would create jobs across the formal and informal sectors, facilitate skills transfer, and promote the adoption of modern technology and equipment.
Bala Wunti, Chief Executive Officer of World Energy Council Nigeria, said Nigeria needed reliable geological data, credible buyers, and other conditions to attract private capital to its critical minerals sector. He emphasized that Africa must move beyond serving as a source of raw materials and position itself as a competitive processing and manufacturing partner in the emerging global critical minerals economy.
However, some stakeholders, including a former Senator who represented Kaduna Central in the ninth National Assembly, Shehu Sani, have urged the government to be cautious in executing the contents of the framework. Sani warned that signing such a deal with a superpower like the US must be taken seriously, as it would have an impact on unborn generations, and cautioned that the details of the agreement should be made public to allow lawmakers to examine its implications.
Key points
- The agreement aims to strengthen economic cooperation between Nigeria and the US in the solid minerals sector.
- Experts and stakeholders have expressed mixed reactions to the agreement, emphasizing the need for transparency and accountability.
- The deal is expected to stimulate economic growth, create jobs, and promote the development and marketing of products derived from Nigeria's raw materials.
