The Federal Government of Nigeria has announced a significant leap in its solid minerals sector, confirming the operational launch of a high-purity gold refinery in Lagos and the readiness for commissioning of a major $600 million lithium processing facility in Nasarawa State. This development, alongside progress on three other gold refineries, signals a decisive policy shift away from raw mineral exports.
From Raw Exports to Value Addition
Minister of Solid Minerals Development, Dele Alake, disclosed these milestones during high-level bilateral talks with Saudi Arabia's Minister of Industry and Mineral Resources, Ibrahim Al Khorayef, in Riyadh. The meeting preceded the Future Minerals Forum and focused on converting discussions into concrete, measurable outcomes for both nations.
Alake emphasized that the operational refinery and the imminent lithium plant are direct results of the government's value-addition policy. "Nigeria's value-addition policy is already yielding tangible results," the minister stated. He explained that domestic processing is crucial for improving revenue retention, creating skilled employment opportunities, and strengthening the country's overall industrial capacity.
Deepening Strategic Partnership with Saudi Arabia
The Riyadh engagement aimed to expand cooperation between Nigeria and Saudi Arabia in the mining sector. Minister Alake identified specific areas for collaboration where both countries have complementary strengths. Technology transfer, training of mining professionals, and mineral exploration were highlighted as practical entry points for joint projects.
Alake pointed to Nigeria's vast landmass and abundance of critical minerals needed for modern manufacturing and the global energy transition as key assets. He stressed the importance of structuring partnerships based on fairness, equity, and mutual benefit, with the Future Minerals Forum serving as an ideal platform for such alignment.
Concrete Steps and Future Frameworks
To ensure the partnership moves beyond dialogue, a joint working group comprising Nigerian officials and the Saudi Chamber of Commerce has been active since the previous forum. This group is expected to present its report before the current gathering concludes.
Priority areas for cooperation include establishing robust systems for mineral traceability, which builds investor confidence, as well as upholding environmental standards and mine pit remediation. In response, Saudi Minister Al Khorayef reaffirmed his country's commitment to its longstanding relationship with Nigeria and supported developing a practical agreement framework. He proposed preparing a draft memorandum of understanding for potential signing during the forum.
This major infrastructure push in the mining sector follows recent regulatory enforcement by the ministry. Minister Alake had previously given mining companies until December 31, 2025, to finalize their Community Development Agreements with host communities, underscoring a holistic approach to sector development that benefits local populations.
