Fatima Umaru Shinkafi, executive secretary, Solid Minerals Development Fund (SMDF) has said Nigeria’s ability to unlock its estimated $700 billion mineral endowment depends on building a credible mining finance ecosystem that can attract long term capital.
Shinkafi who was represented by Martina Ananaba, head minerals and project development, SMDF, stated this in Abuja at the launch of the Ore Reserve Development Forum (ORDF), on Tuesday.
The ORDF was formed following the Geological Society of Nigeria roundtable held in September 2024 which focused on financing Nigerian mining assets and brought together technical experts financial institutions regulators and international mining companies to address barriers to capital access.
Discussions showed that unlocking Nigeria’s estimated $700 billion mineral potential requires closing gaps in ore reserve classification technical capacity and structured financing through coordinated collaboration among miners financiers and regulators.
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As a private sector led initiative ORDF aims to develop standardised reporting systems clear financing pathways and supportive policy frameworks capable of mobilizing long term capital for mining.
According to the executive secretary, reforms under Dele Alake, minister of Solid Minerals Development are improving sector fundamentals with mining contribution to gross domestic product rising from below one percent to about 4.6 percent.
Shinkafi said the investment challenge in mining is not capital availability but the absence of bankable projects due to weak geological data inconsistent reserve classification and poor reporting standards.
She said ORDF was established following industry engagements in 2024 which identified standardised ore reserve reporting technical capacity and structured financing frameworks as critical to unlocking investment.
According to her the SMDF is de-risking early stage mining projects through strict due diligence and collaboration with capital market institutions to prepare credible mining companies for financing.
She disclosed that in the first quarter of 2025 the federal government issued 867 mining licences generating about seven billion naira in fees signaling improving investor confidence and regulatory momentum.
Shinkafi said the forum is expected to deliver a practical mining finance framework that will guide operators standardize disclosures and enable financiers assess risk with greater certainty.
Uba Saidu Malami, chairman, Geological Society of Nigeria, said mining is primarily financed through capital markets rather than traditional banking and requires internationally certified geological and reserve reports particularly for junior explorers.
He said Nigeria must scientifically qualify its mineral resources to global standards to convert geological endowment into investable assets and national wealth.
Mining investment expert, Jon O’Callaghan, executive, MONT CAPITAL, said Nigeria could build a mining industry larger than oil and gas within 25 years if it succeeds in attracting risk capital into exploration.
He said government has largely established an enabling policy environment and that the focus should shift to mobilising private investment into exploration which underpins mining value creation.
O’Callaghan said stakeholders are working with the Nigerian Exchange, NGX and the Security and Exchange Commission (SEC) to align Nigeria’s mining investment framework with global best practice seen in leading exchanges in Australia, Canada and the United Kingdom.
He said creating familiar regulatory and reporting structures is essential to investor participation.
In his remarks, Abdulmajeed Amussah, technical adviser to the executive secretary SMDF, said the Fund’s partnership with ORDF is focused on de risking mining assets and transitioning the sector from informal operations to investment ready businesses.
He said capacity gaps remain significant noting that fewer than ten applications met required standards during a recent SMDF early stage exploration funding window despite thousands of mining licences issued nationwide.
Amussah said targeted funding and technical support are being deployed to strengthen project quality and unlock private capital across the mining value chain.
