Nigeria and South Africa have entered into a landmark agreement to deepen bilateral cooperation in the mining sector, as Africa’s largest economy intensifies efforts to diversify away from oil dependency and unlock its vast mineral wealth. Announced on Thursday by Nigeria’s Minister of Solid Minerals Development, Dele Alake, the agreement was signed during high-level bilateral talks held at the 2025 Mining Indaba Conference in Cape Town, South Africa. It outlines a comprehensive framework for collaboration in areas such as geological mapping using drones, real-time data exchange, mineral exploration, capacity building, and technology transfer.
The initiative will focus heavily on the exploration of agro-minerals and energy-transition minerals like lithium—key for battery production and green energy. Both governments see the deal as a crucial component of their respective national development plans, particularly as Nigeria works to reduce its overreliance on petroleum, which still accounts for more than 75% of export revenues. Nigeria is endowed with over 44 proven mineral types in commercial quantities, including gold, limestone, iron ore, barite, lead-zinc, and lithium. However, the sector remains largely untapped, contributing less than 1% to the GDP, due to challenges including limited infrastructure, regulatory hurdles, and inadequate investment.
Minister Alake stressed that South Africa’s world-class mining expertise, regulatory systems, and investment experience will serve as a blueprint for transforming Nigeria into a major mining hub. “This agreement marks a new era of strategic collaboration. We are not only attracting investments but also building a solid technical foundation for sustainable development,” Alake said.
South Africa, whose mining sector contributes over 7% to its GDP, is recognized for its advanced mining technologies and globally competitive mining firms. Officials say the partnership will also open doors for South African mining companies to explore new ventures in Nigeria. In addition to bilateral cooperation, the agreement calls for the harmonization of mining regulations, joint training programs, and institutional support for artisanal and small-scale miners in Nigeria.
The deal is expected to contribute to job creation, foreign direct investment, and value chain development, aligning with Nigeria’s broader national goal to expand its non-oil revenue base and promote inclusive economic growth. Economic analysts have praised the agreement as a win-win deal for both countries, strengthening regional integration and reinforcing Africa’s position in the global minerals and energy market.
