In a significant move to diversify its economy and revitalize the underperforming mining sector, Nigeria has entered into a strategic partnership with South Africa. The agreement, signed on April 17, 2025, focuses on joint geological mapping using drones, sharing mineral data, and exploring agro and energy minerals within Nigeria.
Mining Locations and Activities
The partnership aims to explore Nigeria’s vast mineral deposits, which include gold, limestone, lithium, iron ore, and zinc. While specific mining sites have not been disclosed, regions like Nasarawa and Zamfara states are known for their rich mineral resources. Notably, mining activities in Zamfara resumed in December 2024 after a five-year ban due to improved security conditions.
Financial Implications and Contractors
The financial details of the Nigeria-South Africa mining pact have not been publicly disclosed. However, the collaboration is expected to attract significant investments, leveraging South Africa’s advanced mining experience to bolster Nigeria’s mining capabilities. Specific contractors involved in the partnership have not been named.
Recent Developments in Mineral Wealth
Nigeria’s mining sector has seen increased interest due to its rich deposits of critical minerals essential for the global energy transition. Efforts to formalize artisanal mining and attract foreign investment have been initiated, including the establishment of processing facilities for minerals like lithium and tin .
Motivation Behind the Partnership
The collaboration with South Africa is part of Nigeria’s broader strategy to diversify its economy beyond oil dependency. The mining sector currently contributes less than 1% to Nigeria’s GDP, highlighting the need for revitalization. By leveraging South Africa’s expertise, Nigeria aims to enhance its mining operations, attract investments, and increase its contribution to the national economy.
Public and Private Sector Dynamics
Nigeria is adopting a public-private partnership model to develop its mining sector. The proposed Nigeria Solid Minerals Corporation will have a capital structure comprising 25% federal government ownership, 25% Nigerian citizens, and 50% private sector participation. This approach aims to minimize government interference and encourage private investment.
Private sector involvement is exemplified by companies like Segilola Resources Operating Limited (SROL), which operates Nigeria’s first commercial large-scale gold mine, the Segilola Gold Mine . Additionally, international firms such as China’s Avatar Energy Materials Company have established lithium processing facilities in Nasarawa State, contributing to the sector’s growth.
The Nigeria-South Africa mining partnership signifies a strategic effort to rejuvenate Nigeria’s mining sector through international collaboration. By combining South Africa’s mining expertise with Nigeria’s rich mineral resources, the alliance aims to foster economic diversification, attract investments, and enhance the sector’s contribution to the nation’s GDP.
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