The Minister of Solid Minerals Development, Dr. Dele Alake, has reaffirmed that the capital market critical to Nigeria’s mining growth, stressing that sustainable financing is the missing link in unlocking the nation’s mineral wealth.
Speaking at a webinar titled “Unlocking Nigeria’s Solid Minerals Potential through the Capital Market”, Alake explained that Nigeria’s vast mineral resources could only translate into economic transformation if structured capital flows are effectively deployed.
The event was jointly organised by the Solid Minerals Development Fund (SMDF) and the Nigerian Association of Securities Dealers (NASD) OTC Securities Exchange.
Alake, represented by his Senior Advisor on Mining and Policy, Amira Waziri, highlighted that the capital market offers long-term financing for exploration, project development, and infrastructure, which are indispensable to the mining industry.
“Through the capital market, junior mining companies can be supported to list, raise funds, and scale operations.
It will also help securitise geological assets, monetise them, and channel institutional capital into infrastructure and processing hubs,” he said.
The minister emphasised that Nigeria’s mining sector is entering a renaissance period, buoyed by political will and policy direction.
However, for this vision to materialise, the country must align mineral resource development with access to capital, technology, and global partnerships.
According to him, the conversation on capital market critical to Nigeria’s mining growth is timely and should evolve into a broader national dialogue on building sustainable financial frameworks.
He noted that the government is committed to inclusivity and stakeholder engagement, including host communities, financial institutions, development finance institutions, and investors.
By aligning with environmental and social best practices, the sector can grow sustainably without neglecting local participation.
Alake cautioned that the mining agenda must go beyond mere extraction of minerals.
“This sector is not just about digging minerals out of the ground. It is about building an economy that is inclusive, resilient, and globally competitive,” he said.
The minister urged capital market operators to design innovative instruments and listing frameworks that meet the peculiar needs of the Nigerian mining ecosystem.
In his technical presentation, the Director-General of the Mining Cadastre Office (MCO), Obadiah Nkom, advised investors to begin their journey into Nigeria’s mining sector with reconnaissance permits.
He explained that the reconnaissance permit, which is low-cost and non-exclusive, provides investors with entry into mineral exploration while ensuring host communities view it as a platform for shared prosperity rather than exploitation.
Nkom revealed that the MCO is digitising its licensing processes to promote transparency, improve efficiency, and attract more credible investors into the industry.
The webinar also explored innovative tools such as blockchain tokenisation as an avenue for early-stage mining finance.
Industry expert, Paul Lalovich, described tokenisation as the process of converting mineral assets into blockchain-based tokens, making ownership and investment more accessible.
He argued that tokenisation has the potential to create trillions of dollars in value within the mining value chain while attracting new classes of investors who prefer digital assets.
He further noted that global trends show rising investor appetite for tokenised real-world assets, positioning Nigeria to benefit if its mining sector adopts this frontier financing approach.
Executive Secretary of SMDF, Hajiya Fatima Shinkafi, represented by her assistant, Omotayo Omitokun, said the webinar was designed to spotlight the financing gaps that hinder the mining sector’s expansion.
She explained that insights from the discussions would help deepen capital market participation in mining and ensure Nigeria’s mineral resources are leveraged for long-term national development.
Shinkafi emphasised that partnerships with capital market operators are vital in bridging the financing deficit for exploration, processing, and value addition.
Alake concluded by stressing that Nigeria’s solid minerals sector is at a defining moment.
While the country has untapped reserves of gold, lithium, limestone, iron ore, and rare earth metals, converting these into wealth demands innovative financial solutions.
“Capital remains the game-changer. With structured instruments, inclusive policies, and global best practices, Nigeria can achieve a mining renaissance that transforms communities, strengthens industries, and boosts government revenues,” he said.
The minister’s remarks reinforced the message that the capital market is critical to Nigeria’s mining growth, and if fully harnessed, it can propel the nation toward a diversified economy less dependent on oil.
