By SUNDAY ABBA, Abuja
Nigeria’s Minister of Solid Minerals Development Dr Dele Alake has stressed that the capital market is a critical pillar in the journey toward a sustainable mining sector.
In his address at the NASD Over-the-Counter (OTC) and the Solid Minerals Development Fund (NASD–SMDF) Webinar themed, “Unlocking Nigeria’s Solid Minerals Potentials Through the Capital Market”, the Minister cited financing gap as one of the cardinal factors that had limited to less than 1 per cent the mining sector’s contribution to Nigeria’s Gross Domestic Product (GDP) despite its wealth.
NASD which Originally stood for the “National Association of Securities Dealers” is now simply the name of the company that operates the OTC market. A Licensed Securities Exchange registered by the Securities and Exchange Commission (SEC) in Nigeria, operating as an Over-the-Counter (OTC) market for unlisted securities, it facilitates trading of securities of companies not listed on the main Nigerian Exchange (NGX).
On the other hand, The SMDF is a Nigerian government initiative focused on unlocking financing for the mining sector to boost economic development and diversification, to attract private sector investment, particularly for early-stage projects, and promote responsible mining practices. It deploys various financial instruments and invests across the mining lifecycle, from exploration to production, and enabling infrastructure.
The minister 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,” he said.
The minister who was represented by his Senior Adviser on Mining & Policy, Amira Adamu Waziri, said,
“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.”
Speaking further, he noted, “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 stressed that the under his leadership, the ministry had adopted a clear roadmap to reposition the sector – the 7-point agenda which includes, first and foremost, establishment of the Nigeria Solid Minerals Company (NSMC),
a commercially driven national champion to catalyze investment in strategic minerals. When fully capitalized, the company will be 25% owned by the Federal Government, 50% owned by the private sector, and 25% floated on the Nigerian Stock Exchange for public ownership by Nigerian citizens.
The minister who noted that the webinar marks the beginning of a broader national conversation on using structured capital to unlock mineral wealth commended the organisers (NASD and SMDF) of the webinar, assuring the ministry’s collaboration with NSMC and SMDF among other stakeholders to develop “bespoke instruments, listings, and frameworks” that would make the vision a reality.
“Let me also underscore that the ministry remains committed to inclusive and strategic stakeholder engagement. We are open to ideas, partnerships, and joint efforts that advance the collective good of the mining industry.
“This includes continuous dialogue with host communities to ensure local participation and benefits; stronger collaboration with financial institutions, DFIs, and capital market operators; and alignment with environmental and social best practices to ensure sustainability,”
Alake said.
Concluding, the minister who expressed the political will of government to moving the sector to greater height, declared that 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.
“As we explore the possibilities before us today, let us keep in mind that this sector is not just about extracting minerals—it is about building an economy that is inclusive, resilient, and globally competitive.
“We thank NASD PLC and SMDF once again for this opportunity and wish all participants fruitful deliberations.
Thank you,” he said.
The Executive Secretary (ES), SMDF, Hajiya Fatima Shinkafi, was represented at the event by Abdulmajeed Oyeyemi Amussah.