Alake: Nigeria’s $700B Mining Wealth Needs Capital Market to Thrive

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Olori Uwem

Well-Known Member
Mar 18, 2024
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Alake: Nigeria’s $700B Mining Wealth Needs Capital Market to Thrive


Key Takeaway:

Nigeria is sitting on an estimated $700 billion worth of untapped solid minerals, and Minister of Solid Minerals Development, Dr. Dele Alake, says the capital market is the gateway to unlocking this massive potential.

️ “The capital market is a critical pillar… It can mobilize long-term financing for exploration, support junior mining companies, and channel institutional capital into infrastructure and processing hubs.”


⚙️ What’s Happening?

At a webinar hosted by NASD Plc and the Solid Minerals Development Fund (SMDF), Dr. Alake:
• Emphasized the need for capital inflows and strategic partnerships
• Highlighted President Tinubu’s mining reform agenda
• Announced a 7-point policy roadmap to position mining as a key economic driver


7-Point Reform Roadmap Includes:
1. Establishment of a National Mining Corporation
2. Deployment of a special Mines Marshals force
3. Accelerated acquisition of geological data
4. Formalization of artisanal mining
5. Expansion of local mineral processing
6. Attracting large-scale investments
7. Stronger stakeholder engagement


Fighting Illegal Mining:
• Mine Marshals are being targeted with blackmail and false bribery claims.
• Alake insists there will be no removal without hard evidence.
• Some media platforms have apologized for publishing paid false reports.

️ “No inducement can sway me. We are confronting the challenge head-on,” — Alake


New Capital Market Tools Announced:

To bridge mining’s funding gap, SMDF launched three key funds:
• Growth Fund: Supports early-stage exploration & project dev.
• Opportunities Fund: Backs advanced projects & infrastructure.
• Research Fund: Funds enabling policies & geological studies.

“Most Nigerian mining projects stall at feasibility stage due to poor funding,” said SMDF’s Abdulmajeed Amussah.


Tech & Transparency:

NASD Plc CEO, Mr. Eguarekhide Longe, unveiled the National Digital Securities Platform (N-DSP) — a blockchain-powered platform to support tokenized mining assets like:
• Debt securities
• Equity offerings
• Mineral-backed instruments

This platform aims to make mining investment accessible, liquid, and transparent.


Key Industry Data:
• Over 867 mining licenses granted in 2025
• Generated ₦7 billion in revenue
• Mining still underfunded compared to sectors like agriculture & transport


The Big Picture:

️ “Nigeria is on the cusp of a mining renaissance.”
Alake stressed that what’s now needed is capital, technology, and bold reforms — backed by political will and regulatory clarity.


Final Word:

Nigeria’s mining sector is ripe for investment. With new reforms, improved security, and a digital capital market infrastructure, the country is ready to attract global players looking to tap into its vast mineral riches.