Nigeria can only unlock its estimated 700-billion-dollar mineral wealth if it builds a strong and credible mining finance system.
Executive Secretary of the Solid Minerals Development Fund, SMDF, Mrs. Fatima Umaru Shinkafi, stated this at the launch of the Ore Reserve Development Forum, ORDF, in Abuja.
Shinkafi who was represented by the Head of Project Development, Dr. Martina Ananaba said the sector is gaining momentum under reforms introduced by the Minister of Solid Minerals Development, Dr. Dele Alake, with mining’s contribution to GDP rising from less than one percent to 4.6 percent.
She warned, however, that despite Nigeria’s vast mineral resources, many mining operations remain unbankable due to poor geological data, weak reporting standards, and artisanal practices.
According to her, the real challenge is not lack of capital but lack of bankable projects.
She explained that the ORDF was created following a 2024 industry consensus that Nigeria needs consistent ore-reserve reporting, stronger technical capacity, and clearer financing pathways to attract investors.
Mrs. Shinkafi said the 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.
She highlighted recent gains, including the issuance of 867 mining licences in the first quarter of 2025, which generated seven billion naira in revenue a development she described as renewed investor confidence.
Mrs. Shinkafi urged stakeholders to use the workshop to design a practical Mining Finance Framework that will set standards, guide miners, and help financiers properly assess risks, saying that if Nigeria builds the right financing system, mining can become a true pillar of economic diversification.
In his presentation, the Chairman of the Ore Reserve Development Forum and President of the Geological Society of Nigeria, Uba Saidu Malami, said Nigeria’s mineral wealth will only translate into national wealth when the country scientifically qualifies its resources to global standards.
He emphasized that mining finance largely comes from capital markets, not banks, making internationally certified reserve reports critical for junior mining companies.
Mr. Malami also drew a connection between natural resources and insecurity, stressing the need to mitigate risks while ensuring Nigeria assigns real value to its gold, diamonds and transition minerals through reliable exploration and reserve reporting.
On his part, a Mining investment expert and Mont Capital Executive, Jon O’Callaghan, said Nigeria could build a mining industry bigger than oil and gas within 25 years but only if the country attracts risk capital into exploration, not just mining.
He said Nigeria already has the right policies in place and that government has “done its job” by creating an enabling environment.
According to him, the missing link is investor willingness to fund exploration, which is the foundation of every successful mining industry.
He said without exploration, there is no mining, and without risk capital, there is no exploration.
Mr. O’Callaghan disclosed that stakeholders are currently working with the Nigerian Exchange and the Securities and Exchange Commission to replicate global mining investment models.
He said the goal is to mirror the operational standards of the Australian Stock Exchange, the Toronto Stock Exchange, and London’s AIM in order to attract exploration funding into Nigeria.
Also speaking, Technical Adviser to the Executive Secretary of the Solid Minerals Development Fund, Mr. Abdulmajeed Amussah, said the partnership between SMDF and ORDF is designed to de-risk mining assets and move Nigeria’s mineral sector from informal operations to bankable, investment-ready projects.
He explained that although Nigeria is richly endowed with shallow deposits often exploited by artisanal miners, most assets are not developed to levels that can attract formal financing.
Mr. Amussah said a recent early-stage exploration funding window exposed major capacity gaps, as fewer than ten applications met the required standards despite thousands of licences issued nationwide.
The Forum aims to co-design a practical Mining Finance Framework that establishes clear reporting standards, defines appropriate financing instruments for each project stage, and creates an enabling policy environment for investors.
