Alake Calls for Capital Market Funding to Unlock Nigeria’s Solid Minerals Potential

Folalumi Alaran in Abuja

The Minister of Solid Minerals Development, Dr. Oladele Alake, has reiterated the need for long-term capital market financing as a critical lever to unlock Nigeria’s vast solid minerals potential. He also called for structured investments to revitalise the sector that currently contributes less than one percent to national Gross Domestic Product (GDP), despite the country’s abundant mineral wealth.

Speaking through his Senior Adviser on Mining and Policy, Amira Adamu Waziri, at a webinar jointly organised by the National Association of Securities Dealers, over-the-counter (NASD OTC) Securities Exchange and the Solid Minerals Development Fund (SMDF), the Minister outlined a strategic vision anchored on private-sector-led growth, investor confidence, and robust stakeholder engagement.

The session, themed, “Unlocking Nigeria’s Solid Minerals Potentials Through the Capital Market,” brought together key players from the mining, finance, and policy sectors to explore sustainable financing models and institutional mechanisms to support Nigeria’s underperforming mining industry.

“Nigeria is endowed with over 44 commercially viable solid minerals spread across the six geopolitical zones,” the Minister noted.

“From gold, lithium, and tin to barite, lead-zinc, and rare earth elements—the resources are immense. Yet we face systemic constraints ranging from poor geological data and weak infrastructure to illegal mining and, most critically, a significant financing gap.”

According to Alake, addressing this financing gap requires patient, long-term capital—precisely the kind that Nigeria’s capital market can provide if properly structured and mobilised.

Central to the Minister’s remarks was his 7-point agenda for sectoral reform, which includes.

He said, “Establishment of a commercially driven Nigeria Solid Minerals Company, to be 25 percent government-owned, 50 percent private-owned, and 25 percent floated on the Nigerian Stock Exchange; Formation of Mines Marshalls, in collaboration with security agencies, to clamp down on illegal mining;

“A drive for comprehensive geological data acquisition to reduce investor risk; formalisation of artisanal and small-scale miners through cooperative models and technical support; incentivising value addition and local processing to curb raw exports.

“Attracting large-scale foreign and local investment through policy stability and transparency; strengthening stakeholder engagement, including host communities and development partners.

“These pillars are the foundation of our current reform roadmap, we are not just regulating—we are facilitating a mining renaissance driven by strategic capital and partnerships.”

The Minister also highlighted tangible progress made under his leadership, such as the overhaul of the regulatory framework to ease doing business, digitisation of licencing systems, and aggressive enforcement actions against illegal operators and defaulting licensees.

“Transparency, data accessibility, and governance reforms are top priorities,” he said, adding that, “we are building an ecosystem where investor confidence can thrive.”

The NASD-SMDF webinar also focused on the development of bespoke capital market instruments tailored to the solid minerals sector—such as mineral asset-backed securities, junior mining company listings, and project-specific investment vehicles.

Speaking during the event, Executive Secretary of SMDF, Fatima Shinkafi, emphasised that unlocking mining capital must go beyond policy talk to an actionable financial architecture.

“There is a glaring financing gap in the value chain. Artisanal miners lack access to structured capital, and even large-scale projects struggle with long-term funding. The capital market offers an opportunity to fill this gap.”

Managing Director of NASD PLC, Mr. Bola Ajomale, stressed the need for a coordinated platform that brings together geological data, market instruments, and risk mitigation tools. “The mining sector needs financing mechanisms that align with its long gestation period. That means more risk-tolerant capital, proper project vetting, and transparency,” he said.

Participants also called for stronger linkages between the mining and finance sectors, including deeper collaboration with pension funds, development finance institutions, and insurance companies willing to underwrite exploration risks.

In closing, Waziri reiterated the Minister’s position that Nigeria has all the necessary elements to emerge as a global mining hub.

 “We have the mineral resources. We have the political will. What we now require is capital, technology, and partnerships to bring it all to life,” she said.

“As we reflect on today’s conversations, let us remember that this sector is not just about minerals—it’s about building an economy that is inclusive, resilient, and globally competitive.”

The Ministry affirmed its readiness to work with capital market institutions, private investors, and host communities to drive sector-wide transformation.