Nigeria and US sign deal to increase mining investment

By Rédaction Africanews with AFP

Nigeria and the United States have agreed to “deepen American investment” in the mining sector of Africa’s most populous country, Nigeria’s minerals ministry said Thursday.

The accord comes as US President Donald Trump has slashed foreign aid and instead prioritised investment deals, especially in Africa, where Chinese firms have deeper roots.

Dele Alake, Nigeria’s minister for solid minerals, and Christopher Landau, US deputy secretary of state, signed the “framework for American investment in Nigeria’s $700 billion mineral resources” Wednesday in New York, on the sidelines of the United Nations General Assembly, the ministry said.

Many African countries’ mining sectors remain heavily tilted toward raw exports, creating challenges for economic development, experts say.

But Alake said the investments would go beyond the simple export of raw materials, whose value is lower than refined end-products.

“Nigeria cannot remain a source of raw materials while others capture most of the value”, Alake said on social media. “We want more local processing, quality jobs, stronger skills and greater opportunities for Nigerian businesses.”

Nigeria is home to deposits of lithium, a major battery component and key to the global transition away from fossil fuels, which has driven foreign mining interest in the country, including from Chinese firms.

Washington has tried to shore up its supply chain of critical minerals particularly as major producer China introduced restrictions on rare earth exports last year.

Nigeria also has reserves of gold, tin, gemstones, iron ore and phosphate.

“The agreement is expected to use the Nigeria-US government relationship as a foundation for business-to-business transactions”, the ministry said in a statement.

Washington and Abuja’s relationship has been rocky, with Trump last year characterising the rampant violence in the country’s Muslim-majority north as a “genocide” against Christians.

The accusations — rejected by independent analysts — sparked a diplomatic row, though it culminated in increased military cooperation and a deployment of US troops.