The Federal Government, through the Ministry of Solid Minerals
Development, is exploring Nigeria’s capital market to build a sustainable and investment-driven mining sector that serves as a foundation for economic transformation.
The Minister of Solid Minerals Development, Dr. Oladele Henry
Alake, disclosed this during a high-level webinar on Wednesday, themed “Unlocking Nigeria’s Solid Mineral Potentials Through the Capital Market.”
The webinar was organised by the National Association of Securities Dealers Plc (NASD) in collaboration with the Solid Minerals Development Fund (NMDF).
The Minister who was represented by his Senior Adviser on Mining and Policy, Amira Adamu Waziri, decried the sector’s inability to unearth over 44 commercial viable mineral resources. He attributed this challenge to insufficient geological data, weak infrastructure, informal operations, illegal mining, and a significant financing gap.
“Nigeria is blessed with an extraordinary endowment of solid mineral resources—over 44 commercially viable minerals, ranging from gold and lithium to tin, lead-zinc, barite, and rare earth elements. These resources are spread across the country’s six geopolitical zones, positioning mining as a truly national sector.
“Yet, despite this wealth, the sector currently contributes less than 1% to national GDP. The reasons are well known—insufficient geological data, weak infrastructure, informal operations, illegal mining, and a significant financing gap.
“It is this financing gap that today’s conversation seeks to address—by exploring how Nigeria’s capital market can serve as a channel for patient, long-term, and strategic investment in the solid minerals value chain,” he said.
Alake also outlined a seven (7) point agenda undertaken under his leadership by the ministry to reposition the sector. These include: Establishment of the Nigeria Solid Minerals Company, with 25% owned by the Federal Government, 50% owned by the private sector, and 25% floated on the Nigerian Stock Exchange for Nigerians; Creation of the Mines Marshalls, working with national security agencies to tackle illegal mining and secure mining sites; Comprehensive Geological Data Acquisition, to de-risk investments and promote informed decision-making among others.
In his presentation, Mr. Eguarekhide Longe from National Association of Securities Dealers – Over-The-Counter (NASD OTC PLC), stressed on the importance of collaboration to create structured investment pathways and improving funding access for the solid minerals sector via the capital market.
He said, “Driven by innovation and quided by expertise, NASD and SMDF are unlocking new frontiers in funding the Solid Minerals sector through digital Security Token Offerings. We believe the future of funding Nigeria’s solid.
On capital market funding options Mr. Longe, emphasised that N-DSP powers the tokenization of multi-asset securities that include traditional equity as well as commodity backed assets which will help to diversify current stock exchange listings.
He listed the following capital market funding options: Equity Instruments – Ordinary shares, preference shares; Debt Instruments – Bonds, notes, debentures, and project-backed securities; Asset-Backed Securities – including instruments that are backed by mined commodities and/or future production capacity, subject to eligibility; Mezzanine – blends of debt and equity for investor flexibility; and Convertible Instruments.
Other key speakers at the webinar included Mr. Martins Imonitie, Managing Director of Nigerian Solid Minerals Company (NSMC), Hajiya Fatima Umaru Shinkafi, Executive Secretary of NMDF, ably represented by the Technical Adviser of NMDF, Mr. Abdulmajeed Amussah, as well as Mr. Oludare Fajimolu, Moderator of the webinar.