The capital market is a critical source of funding for sustainable mining in Nigeria.
The Minister of Solid Minerals Development, Dr Dele Alake, stated this on Wednesday at the NASD–SMDF Webinar, which had over 200 participants in attendance.
The minister, who was represented by his Senior Adviser on Mining and Policy, Amira Adamu Waziri, also said the 7-point Agenda of the Ministry is starting to yield positive results in less than two years of the Tinubu administration.
He listed some of these to include; Establishment of the Nigeria Solid Minerals Company; Creation of the Mines Marshalls; Comprehensive Geological Data Acquisition; Formalization of Artisanal and Small-Scale Mining (ASM); Promotion of Value Addition and Local Processing, to reduce raw exports and stimulate downstream industrialization; Attracting Large-Scale Foreign and Local Investment; and Robust Stakeholder Engagement.
He said: “Today’s theme, ‘Unlocking Nigeria’s Solid Minerals Potentials Through the Capital Market’, is closely aligned with the Ministry’s vision of building a sustainable and investment-driven mining sector—one that serves as a foundation for economic transformation, ” he said.
“Nigeria is blessed with an extraordinary endowment of solid mineral resources—over 44 commercially viable minerals, ranging from gold and lithium to tin, lead-zinc, barite, and rare earth elements. These resources are spread across the country’s six geopolitical zones, positioning mining as a truly national sector.
“Yet, despite this wealth, the sector currently contributes less than 1% to national GDP. The reasons are well known—insufficient geological data, weak infrastructure, informal operations, illegal mining, and a significant financing gap.
“It is this financing gap that today’s conversation seeks to address—by exploring how Nigeria’s capital market can serve as a channel for patient, long-term, and strategic investment in the solid minerals value chain.
“Let me emphasise: the capital market is a critical pillar in the journey toward a sustainable mining sector.
“Through the capital market, we can:- Mobilise long-term financing for exploration and project development;- Support junior mining companies to list, raise funds, and scale operations;- Facilitate securitisation and monetisation of geological assets;- Channel institutional capital into infrastructure and processing hubs.”
He also added that, “The Ministry remains committed to inclusive and strategic stakeholder engagement. Nigeria stands at the threshold of a mining renaissance. We have the mineral resources. We have the political will. What we now require is the capital, technology, and partnerships to unlock this potential.”
Director General of the Nigerian Mining Cadastre Office, Engr Obadiah Simon Nkom, who spoke on ‘Licensing Processes and Requirements of a Mining Asset’, said, “For Investors: Start with reconnaissance — it is the smartest, lowest-cost entry into Nigeria’s mineral wealth. Opportunities: Huge untapped areas still open for reconnaissance in Nigeria. Affordable entry point for investors compared to full-scale mining.
“MCO as the key Regulator, shall continue digitalizing and enforcing standards.
“For Communities: Understand reconnaissance as the beginning of shared prosperity, not exploitation.”
In his presentation, Jon O’Callaghan, Advisor at Ore Reserve Development Forum, gave insights on ‘Mining Asset Development Cycle and Investment Readiness’.
According to him, even though there is a need for investors to access the capital market, they also need to ensure the institution of corporate governance and other basic factors that would attract investments into the Nigerian mining sector.
Director of Agile Dynamics, Paul Lalovich, while speaking on the Topic, ‘Real-world asset tokenisation as a means to unlock early-stage exploration funding’, discussed ways to explore innovative financing models such as asset tokenisation to unlock early-stage funding.
On Anchor Investment and De-risking, he said an incubator provides anchor capital (co-invested with SMDF, AFC, or other partners), as part of de-risking early stages and catalysing FDI.
Executive Secretary of the Solid Minerals Development Fund (SMDF), Fatima Shinkafi, represented by her Executive Assistant, Omotayo Omitokun, delivered the vote of thanks.
“Today’s conversations have shed light on critical elements of the mining asset development cycle,” she said.
“We believe that the insights gained today will not only shape investment readiness but also accelerate sustainable growth and value creation in our mining industry through the capital market.
“We look forward to continued collaboration as we work together to unlock the vast potential of Nigeria’s mineral resources.”
NASD Plc partnered with the SMDF to organise its second high-level webinar, titled ‘Understanding the Mining Asset Development Cycle’, designed to provide stakeholders with an in-depth understanding of the various stages and requirements for successfully developing mining assets in Nigeria. The event was moderated by Oludare Fajimolu.
