Mining Finance System Key to Unlocking Nigeria’s $700bn Mineral Wealth — Shinkafi Emphasis
By Fatima Saka
Nigeria’s pathway to unlocking its estimated $700 billion mineral wealth depends on building a strong, credible and globally competitive mining finance system, the Executive Secretary of the Solid Minerals Development Fund (SMDF), Hajiya Fatima Umaru Shinkafi, has said.
Speaking at the launch of the Ore Reserve Development Forum (ORDF) on Tuesday in Abuja, Shinkafi who was represented by Dr. Martina Ananaba, Head of Minerals and Project Development said that the mining reforms being championed by the Minister of Solid Minerals Development, Dr. Dele Alake, were already yielding results, with the sector’s contribution to GDP rising from less than 1% to 4.6%.
“The real challenge is not lack of capital. The challenge is lack of bankable projects,” she said.
Speaking on Poor Geological Data, Weak Standards Hindering Investment, Shinkafi said many mining assets fail to attract financing because of gaps in geological data, weak reporting standards, and the dominance of artisanal practices.
She explained that the ORDF was established following expert consensus in 2024 that Nigeria must adopt consistent ore reserve reporting, strengthen technical capacity, and build clear financing pathways to unlock investor interest.
She said SMDF is already de-risking early-stage projects, enforcing strict due diligence, and partnering with capital–market institutions to prepare credible mining companies for investment.
Highlighting growing investor confidence, she disclosed that 867 mining licences issued in Q1 2025 generated ₦7 billion in government revenue.
Shinkafi urged participants at the forum to develop a Mining Finance Framework that will set standards, guide miners and help financiers assess risks more accurately.
“If we build the right financing system, mining can become a true pillar of economic diversification,” she added.
Highlighting on Nigerian’s Scientifical Qualify of Minerals and Geological Society, the Chairman of the Geological Society of Nigeria, Uba Saidu Malami, said Nigeria’s mineral wealth will only translate into real national wealth when the country adopts global reporting standards.
He noted that mining finance worldwide comes primarily from capital markets, not banks, making internationally certified geological reports essential.
Malami also drew attention to security challenges around natural resources, stressing the need for Nigeria to assign real, scientifically verifiable value to its gold, diamonds and transition minerals.
Speaking on the Nigeria Buildings Sector Bigger Than Oil — O’Callaghan, the mining investment expert and Mont Capital executive, Jon O’Callaghan, said Nigeria could develop a mining industry bigger than oil and gas within 25 years, but only if the country succeeds in attracting risk capital into exploration.
According to him, the Federal Government has already created the right policy environment, but private capital is still missing.
“It’s not about government anymore. Without exploration, there is no mining.
And without risk capital, there is no exploration,” he said.
O’Callaghan noted that stakeholders are now working with the Nigerian Exchange (NGX) and the Securities and Exchange Commission (SEC) to replicate global mining investment models.
He said the goal is to mirror the standards of the Australian Stock Exchange (ASX), Toronto Stock Exchange (TSX) and London’s AIM to attract exploration-focused funding into Nigeria.
“All we are doing is creating the same environment that works elsewhere in the world, so investors can invest,” he added.
Outlining the SMDF–ORDF Partnership Aims to Convert Mineral Potential Into Wealth, the Technical Adviser to the SMDF Executive Secretary, Mr. Abdulmajeed Amussah, said the partnership between SMDF and ORDF aims to de-risk mining assets and shift Nigeria from informal operations to bankable, investment-ready projects.
He said although Nigeria has numerous shallow deposits easily mined by artisans, most mineral assets are too underdeveloped to attract formal funding.
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Amussah revealed that a recent early-stage exploration funding window exposed major capacity gaps — with fewer than ten applications meeting the required standards, despite thousands of licence holders nationwide.
He said the SMDF is working to provide the funding and technical support needed to convert Nigeria’s mineral potential into shared prosperity.
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