US and Nigeria seal mining investment pact

The United States and Nigeria have finalized a new agreement to deepen American investment in Nigeria’s mining sector, marking a significant thaw in their relationship after a period of strained ties. The deal was announced on the sidelines of the United Nations General Assembly in September, as Washington seeks to leverage its security partnerships across Africa to secure greater access to the continent’s critical minerals. Dele Alake, Nigeria’s minister of solid minerals, described the framework as an important step in strengthening cooperation around mineral resources, valued at about $700 billion.

The agreement covers geological data, exploration, mineral development, processing, infrastructure, and technical capacity. “In the coming months, we will turn this framework into projects, investments and real results for our people,” Alake said. “We will identify viable projects and build partnerships that create value for Nigerians and our US partners.”

The focus on critical minerals reflects a broader U.S. strategy to reduce dependence on China for essential supplies like cobalt, lithium, and rare earth elements, which are vital for clean energy and defense technologies.

Nigeria’s mineral reserves—including lithium, tantalum, niobium (found in coltan), tin, and rare earth elements—have attracted global interest amid rising demand. However, challenges remain, including under-explored regions, insufficient geoscience data, and inadequate infrastructure to transform geological potential into economically viable resources. Munira Raji, a senior research fellow at the Africa Policy Research Institute, noted that while lithium often dominates discussions, other minerals like tantalum and niobium are equally critical for advanced manufacturing and digital infrastructure. “There is considerable excitement around Nigeria’s mineral endowment, but parts of the country remain under-explored, and we still need better geoscience data, resource definition and mineral characterisation before we can confidently translate that geological potential into economically recoverable resources,” she said.

The diplomatic improvement follows a period of heightened tensions. In July last year, the U.S. defunded USAID operations in Nigeria, which had supported about 90% of the country’s HIV treatment programs, at a cost of around $740 million. The move came alongside stricter visa restrictions, limiting Nigerians to single-entry, three-month permits instead of the previous five-year, multiple-entry visas.

Abuja also rejected U.S. pressure to accept third-country deportees as part of Trump’s migration agenda. Relations further deteriorated when the Trump administration designated Nigeria a “Country of Particular Concern” over religious freedom in late 2025. Trump accused radical Islamists of threatening Christianity in Nigeria, calling the country “disgraced” and threatening military intervention. By late 2025, however, the diplomatic stance shifted. Trump later commended Nigerian President Bola Tinubu for progress in counterterrorism, a marked contrast to earlier hostility.

Military cooperation has deepened alongside the minerals push. In December, U.S. forces conducted joint air strikes with Nigerian counterparts against Islamist militants in Sokoto. In February, the U.S. deployed a small military team to Nigeria, and by May, the two countries announced a joint operation that resulted in the death of Abu-Bilal al-Minuki, reportedly the global second-in-command of Islamic State in northeast Nigeria.

Ebenezer Obadare, a senior fellow at the Council on Foreign Relations, observed that the U.S. approach increasingly links security cooperation with access to critical minerals. “I think for the most part the fault lies with the U.S. itself, especially in its signalling that critical minerals come first and everything else second,” he noted. “One can clearly see how, in a Nigerian context, it makes little sense to separate these.”

While Raji cautioned against assuming a direct causal connection between security and minerals, Nigeria and the U.S. have long collaborated on counterterrorism, intelligence, and regional stability; she acknowledged that as critical minerals gain geopolitical importance, security and commercial interests will increasingly intersect. “I would argue that critical mineral supply chains depend on political stability, functioning institutions, secure infrastructure and predictable trading relationships,” she said.

The U.S. withdrawal of approximately $740 million in assistance for Nigerian health programs in July last year disrupted critical services, including antiretroviral therapy that had relied heavily on American funding. Nigerian authorities have since reallocated domestic budgets to maintain treatment continuity, though procurement and distribution networks remain strained. Visa policy changes in mid-2023, which limited Nigerian travelers to three-month single-entry permits, further complicated business mobility and health-sector coordination.