Nigeria is set to take a bold step towards transforming its mining and natural resource sectors with the unveiling of the “Africans for Africa Fund,” a financing initiative aimed at mobilising capital within the continent for Africa’s development.
Announced in Abuja by the Minister of Solid Minerals Development, Dr Dele Alake, ahead of the 2025 African Natural Resources and Energy Investment Summit (AFNIS), the Fund will focus on industrialisation, local beneficiation, and strategic investments across the solid minerals value chain.
Represented by the Director-General of the Mining Cadastre Office, Obadiah Nkom, Alake described the Fund as a shift in mindset, where Africans can use African resources to back African priorities and drive sustainable development.
The Fund will be formally launched during the AFNIS summit, scheduled from July 15 to 17 at the State House Conference Centre, Abuja, under the theme: “Harnessing Local Content for Sustainable Development,” highlighting a pivot from raw material exports to domestic value addition and job creation.
Strengthening local content
To make sure this vision becomes a practical development, Nigeria is actively strengthening local content policy within its mining sector. The government has been working to review and enforce local content policies that require mining companies to source materials, labour, and technology locally.
This policy push encourages domestic industries to develop processing plants, reducing dependency on raw mineral exports and ensuring that value addition and job creation occur within Nigeria.
Institutions such as the Nigerian Content Development and Monitoring Board (NCDMB) are collaborating with the Ministry of Solid Minerals Development to guide miners on compliance, technical partnerships, and local capacity building, ensuring that the country’s mineral wealth benefits local communities.
Furthermore, the Ministry of Solid Minerals Development has introduced formal collaborations with universities and research institutions to improve innovation in mineral processing and environmental management.
The aim is to build a local environment for skilled geologists, engineers, and environmental scientists capable of supporting the sector’s industrialisation goals.
Initiatives like the Solid Minerals Development Fund (SMDF) have already started funding research on lithium, gold, and other strategic minerals while providing soft loans to small-scale miners to encourage formalisation and responsible mining.
These targeted interventions are positioning Nigeria to benefit from its mineral wealth while aligning with sustainable practices.
Technology for efficiency
However, the government is also utilising the electronic system to improve transparency and efficiency within the mining sector. Through the Mining Cadastre Office (MCO), the government has digitised its licensing processes, reducing inefficiencies and enabling investors to easily acquire exploration and mining licenses.
Digital platforms for mineral tracking also help monitor the movement of minerals, reducing illegal mining activities and increasing revenue for the government.
Such digital interventions align with the Fund’s goal to attract investments by assuring transparency, which is critical for building trust among local and international investors in the sector.
To add to these solutions, the ministry is actively enforcing Environmental Impact Assessments (EIA) before the approval of mining licences, while also requiring companies to develop community development agreements.
This ensures that mining host communities benefit directly from projects through infrastructure development, employment, and environmental restoration initiatives.
Civil society organisations and local NGOs are also actively monitoring compliance and advocating for the rights of communities affected by mining activities, ensuring the sector’s growth does not come at the cost of social and environmental stability.
The unveiling of the “Africans for Africa Fund” provides an opportunity to strengthen these initiatives under a financing framework that prioritises African capital for African growth. If properly implemented, the fund can transform Nigeria’s mining sector into a vehicle for industrialisation, job creation, and inclusive economic growth.
It will empower the country to move beyond the limitations of raw mineral exports to a future where domestic industries thrive, communities benefit, and Africa’s mineral wealth drives the continent’s sustainable development.
Nigeria is positioning itself to transform its mining and natural resource sectors with the launch of the "Africans for Africa Fund," aiming to mobilize capital within the continent for African development. Announced by Dr. Dele Alake, Minister of Solid Minerals Development, this fund will be a focal point at the upcoming African Natural Resources and Energy Investment Summit in 2025, encouraging industrialization and local beneficiation. Emphasizing local value addition and job creation, the initiative highlights a shift from raw material exports.
To facilitate this transformation, Nigeria is bolstering its local content policies in the mining sector, ensuring companies source materials, labor, and technology domestically. Collaborations with institutions like the Nigerian Content Development and Monitoring Board and various universities aim to build local capacity and improve innovation. Additionally, the Solid Minerals Development Fund is providing support for research and small-scale miners to promote formalization and responsible mining practices.
Technological advancements also play a critical role, with the adoption of electronic systems by the Mining Cadastre Office to streamline licensing processes and improve transparency. These digital measures, coupled with mandatory Environmental Impact Assessments and community development agreements, aim to ensure the sector's sustainable and socially responsible growth. The "Africans for Africa Fund" is expected to drive Nigeria's mining industry towards industrialization, stimulate economic growth, and enable communities to benefit from mineral wealth.
