The Federal Government of Nigeria and the United States Government have signed an agreement to deepen America’s investment in Nigeria’s mining sector and accelerate the development of the country’s mineral resources, estimated by the Federal Government at about $700 billion.
The agreement was signed on Wednesday at the Nigeria Mission House in New York by the Minister of Solid Minerals Development, Dr Dele Alake, and the United States Deputy Secretary of State, Christopher Landau, during the the 81st United Nations General Assembly (UNGA) meeting.
Alake, who described the pact as an important step towards strengthening Nigeria-US cooperation in the development of Nigeria’s mineral resources, explained that the deal
would go beyond attracting foreign capital into the sector and ensure that Nigeria retains a greater share of the value generated from its mineral wealth.
According to him, Nigeria can no longer afford to remain predominantly a source of raw materials while other countries and companies get more foreign exchange earnings through processing and manufacturing of their mining resources.
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The minister said: “We are not here to remain a source of raw material for the value that others create,” Alake said, stressing the Federal Government’s determination to promote local processing, develop technical skills and create quality jobs.”
Alake expressed optimism that the implementation of the agreement would create opportunities for Nigerian businesses while facilitating the entry of American capital, technology and expertise into the mining value chain.
He explained that since the pact would extend beyond exploration to mineral processing, infrastructure development and technical capacity building, the Federal Government would now focus on translating the framework into projects, investments and real results for Nigerians.
Alake said the agreement also aligned with the Federal Government’s broader efforts to diversify the Nigerian economy by positioning the solid minerals sector as a significant driver of industrialisation, employment and economic growth.
Speaking on the pact, the U.S Deputy Secretary of State said the agreement reflected the strengthening economic partnership between Nigeria and the United States, with both countries seeking greater economic prosperity.
Landau also expressed the U.S support for Nigeria’s objective of moving away from the export of raw minerals and retaining more value domestically through processing and other value-added activities.
