Stakeholders of the Nigerian solid minerals sector on Tuesday converged in Abuja for the inaugural Ore Reserve Development Forum (ORDF) workshop, a meeting many described as a defining moment for the future of mining finance, resource diversification and national development.
Delivering the keynote address, the Executive Secretary of the Solid Minerals Development Fund (SMDF), Hajia Fatima Umaru-Shinkafi said the new forum represents “a critical step toward strengthening and expanding the financing frameworks needed to unlock our nation’s mineral wealth for national development.”
Speaking before industry leaders, investors, regulators, and members of the diplomatic and private sectors, Shinkafi, who was represented at the event by Dr Martina Ananaba, Head of Minerals and Projects Development at the SMDF, stressed that the partnership between SMDF and ORDF aims to bridge the gap between Nigeria’s geological potential and the bankable projects needed to attract global capital.
According to her, “Mining finance is very important because it is the mechanism that converts geological potential into economic performance — into jobs, revenue, industrial capacity, and prosperity.”
The Executive Secretary further noted that ongoing reforms by the Minister of Solid Minerals Development, Dr Dele Alake, had raised the sector’s contribution from less than 1% of GDP to “4.6%, though still lower compared to countries like South Africa and Ghana at around 6%.”
She likened Nigeria’s current position to resource-rich nations before their economic take-off: “Nigeria today mirrors Saudi Arabia a decade ago, Australia in the early 2000s, and Botswana in the 1980s—each at the cusp of transforming resource wealth into diversified national growth,” she said, citing Nigeria’s “estimated $700 billion in mineral potential.” She, however, noted that unlocking that potential requires more than deposits. Shinkafi stated: “The real challenge is not simply access to capital—it is the lack of bankable projects… geological reporting is inconsistent, ore reserve classification does not meet international standards, and many operations lack the sophistication to absorb structured finance.”
In her closing remarks, Shinkafi said the SMDF–ORDF partnership aims to “build the transparent, credible, and functional financing framework that Nigeria’s mining sector needs to fulfil its role as a pillar of economic diversification.”
She urged participants to contribute fully: “The framework we develop today will shape the future of mining finance in Nigeria and determine whether we successfully unlock the national development potential that lies beneath our soil.”
Birth and Mission of ORDF
The ORDF, it was gathered, emerged from the Geological Society of Nigeria (GSN) Roundtable 2.0 in 2024, designed to confront persistent barriers to mining finance.
GSN President, Mr Uba S. Malami told the audience that “unlocking Nigeria’s $700 billion mineral potential requires strategic collaboration between miners, financiers, and regulators.”
He emphasised that many Nigerian mining operations remain informal, under-capitalised, and technically weak. The forum, he said, is meant to create “standardised reporting systems, financing pathways, and policy frameworks that mobilise capital for the mining sector.”
In a sideline interview with journalists, ORDF Chairman, Malami Uba Saidu, said the purpose of the forum is to raise Nigerian mining companies to globally recognised standards.
“The quality of the board you present determines whether you can be listed. The entire purpose of the ORDF is to support junior mining and exploration companies in raising their standards… We are confident that this marks the beginning of something transformative.”
He addressed concerns about insecurity around some mining sites, saying: “Across the world, natural resources often attract insecurity. What we see around mining sites in Nigeria is not unique… What matters is how we discuss them, understand them, and put measures in place to mitigate the risks.”
Beyond security, Malami stressed that Nigeria must move from raw deposits to real value: “It is not enough to have mineral deposits; we must extract value from them… Until you know the true value of what lies beneath your soil, you cannot price your assets, attract investment, or build an efficient mining ecosystem.”
On ongoing policy reforms and partnerships, including engagements “with the Pentagon in the SMD”, he said these developments are part of aligning Nigeria’s frameworks with global best practice.
SMDF: De-risking Nigeria’s Mineral Future
On the sidelines of the workshop, SMDF’s Technical Adviser to the SMDF Executive Secretary, Mr. Abdulmajeed Oyeyemi Amussah, told journalists that the Fund’s role is to transform Nigeria’s mineral potential into tangible prosperity.
“Our mandate is clear: to de-risk mining assets and provide strategic funding and interventions that turn mineral potential into shared prosperity, prosperity that reaches the very last mile.”
He explained that because Nigeria’s deposits are shallow, many artisanal miners operate informally. “The challenge lies in converting informal operations into formal, economically productive ventures,” he added.
Invest in Exploration, Fund Local Junior Mining Companies
Australian mining expert John O’Callagan of Montt Capital told participants that Nigeria is on the verge of a historic shift.
“Within the next 25 years, mining will become bigger than oil and gas in Nigeria,” he predicted.
Callagan emphasised that the next phase depends on investor participation: “This is no longer about the government alone. The government has done its part… The next step is for investors to put money into exploration, not just mining.”
He noted that without risk capital, exploration cannot take place, adding: “We are working with NGX and SEC to replicate the systems that operate in the world’s top mining exchanges… Our goal is to recreate that investment environment here to enable inflows of capital.”
He later delivered a technical analysis on the structural challenges limiting Nigeria’s exploration landscape. He cited the “lack of risk capital” as a major barrier, explaining that banks are reluctant to fund projects without proper technical assessments. “Most projects in Nigeria are stuck at early exploration stages,” he said.
O’Callagan presented a global case study of Sandfire, showing how exploration success can exponentially increase market value. Borrowing from this model, he recommended the creation of local junior mining companies listed on the NGX.
He argued that Nigeria’s vast, untapped minerals could attract global retail investment—if the right structures are built. These include a “standardised reporting framework” and active participation of stockbrokers.
Building the Architecture for Mining Finance
THE TRUTH reports that key action points from the forum include finalising agreements with the Nigerian Stock Exchange (NGX) and the Securities and Exchange Commission (SEC) to list junior mining companies; developing a standardised national reporting framework; collaborating with brokers to unlock capital for exploration; and ensuring technical capacity to produce bankable geological data.
