New framework agreement aims to unlock American capital for Nigeria’s critical‑minerals sector, linking U.S. firms with local operators as Abuja navigates rising competition from Chinese mining interests.
By Ebere Inyama
ABUJA, Nigeria — Nigeria and the United States have signed a new framework agreement designed to channel American investment into Nigeria’s estimated $700 billion minerals sector (₦954 Trillion), a move officials say could reshape the country’s critical‑minerals landscape and expand opportunities for domestic businesses. The pact, signed in New York by Solid Minerals Minister Dele Alake and U.S. Deputy Secretary of State Christopher Landau, outlines cooperation on geological data, mineral processing, infrastructure, and technical capacity — while linking Nigerian firm Promethean Resources with three U.S. companies focused on mining equipment, renewable energy, and site security.
Speaking at a ceremony to mark the signing of the agreement between the two countries, Nigeria’s Minister of Solid Minerals Development, Alake, said Nigeria’s objective was to develop and expand opportunities for Nigerian businesses.
“In signing this framework therefore, Nigeria and the United States of America have found a shared conviction that the supply chain of these minerals must be secure, resilient and built upon responsible investment”, Alake had said.
“The framework provides for cooperation in geological data and exploration, mineral development and processing, infrastructure, and technical capacity building,” Alake added.
The deal which was formalized on 23 September, 2026 at the Nigeria Mission House in New York, has Alake and the US Deputy Secretary of State, Christopher Landau, as signatories.
The strategic partnerships
Speaking at the US – Nigeria Strategic Investment Dialogue in New York on 24 September, 2026, Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, reaffirmed Nigeria’s commitment to converting investment frameworks into commercial partnerships.
The agreements brought together Nigeria’s minerals extraction and processing company, Promethean Resources, and three US – based companies, Vermeer Corporation, Renewvia Energy and Terra Industries.
Promethean Resources in collaboration with Vermeer Corporation will explore the deployment of advanced equipment for iron ore, tin, lithium and gold operations aimed at improving operational efficiency, strengthening workforce development and supporting responsible mineral extraction and processing in Nigeria.
While the collaboration with Renewvia Energy Corporation is intended to develop renewable energy solutions for mining and processing operations, the deal signed with Terra Industries is intended to explore the deployment of technology-enabled security solutions at mining and mineral processing sites in Nigeria.
Nigerians react
“This pact is a good start especially when you note that the demand for rare earth minerals has increased and they’re not available in many developed nations that use them”, said economic analyst and Director General, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf.
“It gives Africa some comparative advantage and we need to seize this opportunity to grow the economy”, Yusuf added.
“Under the Community Development Agreement (CDA), mining operators are expected to provide agreed benefits to communities affected by their activities”, said Gideon Onyeka, an Imo state – based economist, to TruthNigeria.
“These can include schools, healthcare facilities, water projects and other social infrastructure”, Onyeka added.
In a reaction, former Kaduna Central Senator, Shehu Sani applauded the initiative but expressed concern over what he considered insufficient disclosure of its details.
“The deal is a commendable achievement but the details should have been earlier made public for at least parliamentary scrutiny so as to ensure that our national interests and the interests of the host communities are well protected,””, said Sani.
In a message to TruthNigeria, a former Director at the Central Bank of Nigeria, and governorship candidate for Plateau State in the forthcoming 2027 general elections under the platform of the Nigeria Democratic Congress (NDC), Dr. Jonathan Akuns, said the $700 billion mining deal signed by Alake has a political undertone.
“’The cited deal is a classic case of when economics becomes politics”, wrote Akuns in his message to TruthNigeria.
“Politics is a game of dealing in hope, and hope dealers are often focused on what their overriding interest is rather than National interest, security and welfare of citizens”, Akuns continued in his message.
“The optics of the gesture with the USA is all about the intrinsic essence of the interest of a hope dealer while the utility of beneficiation projects such as mining rights are roused by entrepreneurial proprietary convictions”, Akuns added.
$83.5 million (₦114 billion) gained from solid minerals in 3 yrs.
Nigeria’s solid minerals sector generated ₦6 billion ($4.4 million) revenue in 2023, ₦38 billion ($27.9 million) in 2024 and ₦70 billion in 2025 ($51.3 million), while attracting an estimated $2.6 billion (about ₦3.5 trillion) in foreign direct investment in the past 3 years, according to a report by the Sun.
Those figures suggest that the industry is beginning to attract greater attention from investors and government agencies, the report added.
The Challenges ahead
With the USA seeking stronger critical-mineral supply chains from Nigeria, and Chinese companies already active in parts of Nigeria’s mining industry, particularly lithium and gold, the Nigerian government is faced with the task of managing competing foreign interests.
Nigeria had in September, 2024, signed a $1 billion (₦1.4 trillion) iron ore-to-steel project with a Chinese firm, Sinomach-He.
Under the agreement, Sinomach-He will serve as the master contractor, utilizing its expertise in engineering, procurement, installation, commissioning, and training for the project.
Between September, 2023 and October, 2025, four Chinese companies, including Canmax Technology, Jiuling Lithium, Avatar New Energy Nigeria Company, and Asba have invested over $1.3 billion in lithium processing, according to Nigeria’s Minister of Solid Minerals Development, Dele Alake.
Ebere Inyama reports on conflict and religious freedom for TruthNigeria.
