Bala Wunti, a seasoned expert with three decades of experience in Nigeria's upstream oil sector, has cautioned that Africa's emerging mineral wealth may follow the same pitfalls as its crude oil industry. Speaking at the 2026 Concordia Annual Summit in New York, Wunti emphasized the need for Africa to learn from its past experiences. With a background that includes serving as Chief Upstream Investment Officer of NUIMS and managing director of NAPIMS and the Petroleum Products Marketing Company, Wunti's insights carry significant weight. His career has been marked by high-stakes negotiations and management of multibillion-dollar portfolios.
Wunti's accomplishments in Nigeria's oil sector are noteworthy. He led the renegotiation of the country's Deep Offshore Production Sharing Contracts, breaking a two-decade stalemate with international oil companies. This renegotiation resulted in a larger government share of offshore revenue, a rare instance of translating resource wealth into tangible returns. Given his track record, Wunti's warnings about Africa's mineral wealth are worth considering. He argues that exporting raw materials while importing refined products creates poverty rather than prosperity, a pattern that must not be repeated with critical minerals.
The global energy landscape is shifting, with demand for battery minerals such as lithium, cobalt, graphite, and rare earth elements on the rise. Wunti noted that for 50 years, energy was priced in barrels, but for the next 50, it will be priced in kilograms of these critical minerals. As a result, processing capacity, rather than raw deposits, is becoming the real source of economic advantage. This shift underscores the importance of Africa developing its processing capabilities to maximize the value of its mineral resources.
Wunti advocates for Africa to become a processing partner rather than merely a source of raw materials. He describes the permanent export of unrefined minerals as "colonial economics," although he acknowledges that temporary concentrate exports may sometimes be commercially necessary. This perspective is particularly relevant for Nigeria, which has identified 44 critical minerals. However, Wunti emphasizes that geological indications are not yet proven reserves backed by internationally recognized data, which is crucial for attracting investment.
Nigeria's experience serves as a useful case study. The country's identified critical minerals have not yet been backed by internationally recognized data, which is essential for securing funding from investors. Wunti stresses that investors fund projects, not potential, highlighting the need for Africa to move beyond mere identification of resources and towards proven reserves. This approach will enable the continent to unlock the full value of its mineral wealth.
Wunti's argument is centered on the need for Africa to add value to its mineral resources through processing and refining. He believes that this approach will enable the continent to create jobs, stimulate economic growth, and avoid the pitfalls of its crude oil industry. By becoming a processing partner, Africa can break the cycle of exporting raw materials and importing refined products, which has contributed to poverty and underdevelopment.
As the global demand for battery minerals continues to rise, Africa's response will be critical in determining the continent's economic future. Wunti's warnings and recommendations offer a timely reminder of the need for Africa to adopt a more strategic approach to its mineral resources. By learning from its past experiences and developing its processing capabilities, Africa can unlock the full potential of its mineral wealth and create a more prosperous future for its people.
Key points
- Africa must become a processing partner rather than remain a source of raw material to avoid repeating the mistakes of its crude oil era.
- The global demand for battery minerals is rising quickly, and processing capacity, not raw deposits, is becoming the real source of economic advantage.
- Nigeria has identified 44 critical minerals, but geological indications are not yet proven reserves backed by internationally recognized data.
