FG Moves to Unlock Mining Potential with Licensing, Capital Market Reforms
Folalumi Alaran in Abuja
The federal government has reiterated its commitment to repositioning the mining sector as a key driver of economic diversification, stressing that transparent licensing, capital market financing, and digital reforms will unlock the country’s vast mineral wealth.
At a virtual meeting on Wednesday hosted by the Solid Minerals Development Fund (SMDF) in collaboration with NASD Plc, stakeholders highlighted the centrality of licensing, governance, and innovative financing models to Nigeria’s mining renaissance.
Delivering remarks on behalf of the Minister of Solid Minerals Development, Senior Adviser on Mining & Policy, Amira Waziri, said the ministry has adopted a clear seven-point agenda to transform the industry.
She explained the roadmap includes the creation of a Nigeria Solid Minerals Company, establishment of Mines Marshalls to curb illegal mining, acquisition of comprehensive geological data, and the formalization of artisanal miners into cooperatives.
Other priorities include value addition through local processing, attracting large-scale investment, and strengthening stakeholder engagement.
“The capital market is a critical pillar in the journey toward a sustainable mining sector, through it, we can mobilize long-term financing for exploration, support junior mining companies to scale operations, and facilitate the securitization of geological assets.”
She added the ministry is committed to transparent reforms, improved digital systems for licensing, and robust stakeholder dialogue to ensure host communities benefit directly from mining activities.
In her address, the Executive Secretary of SMDF, Hajia Fatima Umaru Shinkafi, represented by her Executive Assistant, underscored the Fund’s role in bridging the financing gap that has constrained Nigeria’s mining industry.
She emphasized that leveraging innovative instruments such as digital fundraising, tokenization of mineral assets, and Foreign Direct Investment-as-a-Service models can attract global capital to Nigerian mining ventures.
The Director-General of the Mining Cadastral Office (MCO), Mr. Obadiah Nkom, in his own presentation, stressed that mining assets only gain economic value when backed by valid licenses.
“Without a valid license from the MCO, mineral reserves and resources remain just geological data, not bankable or tradable assets,” he stated.
He explained that reconnaissance permits and exploration licenses are the starting points for any mining journey, as they provide investors with structured, low-cost entry into Nigeria’s mineral corridors while ensuring compliance and sustainability.
He added that licensing serves as the “production backbone” of mining, as financial institutions and investors recognize only licensed reserves and operations as legitimate balance-sheet assets. The MCO, he assured, will continue to uphold its principles of transparency, “first come, first served,” and digitalized monitoring to foster accountability.
Stakeholders agreed that unlocking Nigeria’s mineral wealth requires not just geological data and regulatory enforcement, but also robust financial structures.
The discussions highlighted opportunities for blockchain-driven investment incubators, securitization of mineral assets, and closer alignment between mining operators, financial markets, and host communities.
With more than 44 commercially viable minerals spread across Nigeria’s six geopolitical zones, participants concluded that the country stands at the threshold of a mining renaissance.
What is now needed, they stressed, is the right blend of capital, technology, and partnerships to translate resource potential into national prosperity.
