Unlocking Project Development Financing for the Nigerian Mining Sector
Untapped Wealth: Nigeria’s Immense Potential in the Mining Sector
Nigeria’s mining potential is hindered by poor sector funding and private sector hesitance, stalling promising projects at early stages
Nigeria boasts a wealth of mineral resources that span from gold to tantalite, limestone, and everything in between. The nation’s geological composition presents a treasure trove waiting to be tapped.
However, despite having an estimated $700 billion worth of mining potential, mining exploration in Nigeria remains poorly funded, with only a fraction of mining projects reaching their full potential. Many promising projects languish in the exploration stage due to difficulties in accessing financing for project design, construction, and production.
The high capital risk and expertise gap associated with the sector have continued to pose significant challenges for private sector participation and investments.
What Solution have we Created?
We have partnered with the AFC to co-fund and co-develop commercial-scale mining projects in Nigeria.
Africa Finance Corporation (AFC) and the Solid Minerals Development Fund (SMDF) have partnered to co-fund and co-develop commercial-scale mining projects in Nigeria. An initiative of this partnership is the Project Development Facility, launched to fast track the development of priority mining projects in Nigeria. The partnership aims to mitigate risks and create a pipeline of high-quality projects with economic impact.
The Project Development Facility focuses on precious and base metals, bulk minerals, and minerals critical to the global energy transition. The AFC-SMDF partnership seeks to address challenges hindering Nigeria’s mining potential and unlock its full spectrum of opportunities.
What Projects will be Funded?
Projects considered under the Project Development Facility should meet the following strategic pillars:
Priority Minerals
Projects focused on precious and base metals, bulk minerals, and minerals critical to the global energy transition.
Management and governance
Proponents with clear governance structures, polices and financial records.
Technical soundness
Projects with low exploration risk, competitive positioning in the cost curve, and strong technical team
Compliance & ESG
Strong compliance with government regulations and ESG Standards.
FAQs
The Project Development Facility is an initiative launched to fast track the development of early stage mining projects in Nigeria.
We primarily focus on precious and base metals, bulk minerals, and minerals critical to the global energy transition. Projects should also align with our key strategic pillars of good management and governance, technical soundness, compliance with regulations and ESG standards, alignment with priority minerals.
Project sponsors, mining companies, and entities engaged in mining activities in Nigeria can apply for funding. Projects at various stages, from exploration to development, may be considered.
You can submit your project for consideration through our portal.
The investment process involves project submission, initial screening, in-depth evaluation and due diligence, committee review, crafting indicative term sheets, negotiation of definitive agreements and deal structuring, project monitoring, and co-development. It culminates in long-term financing for project development.
Sustainability is a key consideration. Projects must align with best practices and global ESG standards. We work closely with project sponsors to ensure responsible mining practices.
Submit an application
Apply to have your project considered for financing by the project development fund.
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Find out more
Get in touch with our team to learn more about the AFC-SMDF development facility.
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