Nigeria Partners with South Africa to Revive Mining Sector, Cut Oil Dependence

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In a major step toward reducing its reliance on oil, Nigeria has signed a bilateral agreement with South Africa to boost collaboration in the mining sector. This move highlights Nigeria’s renewed efforts to tap into its vast but underdeveloped mineral resources by partnering with international allies.

Announced by Dr. Dele Alake, Nigeria’s Minister of Solid Minerals Development, the agreement lays out a framework for cooperation in areas such as geological mapping using drones, sharing mineral data, and jointly investing in the exploration of agricultural and energy-related minerals across the country.

The deal capitalises on South Africa’s global mining expertise to help Nigeria revive a sector that, despite being rich in resources like gold, lithium, limestone, iron ore, and zinc, has historically contributed less than 1% to the nation’s GDP.

Dr. Alake pointed out that working with South Africa would fast-track the adoption of modern technology and expertise, critical elements in building a competitive and sustainable mining industry. Given South Africa’s strong mining infrastructure and experience, the partnership is seen as a strategic advantage for Nigeria.

This initiative also supports wider African goals under the African Continental Free Trade Area (AfCFTA), which promotes regional cooperation and reduces reliance on foreign supply chains. Nigeria aims to boost domestic production and develop local value chains, positioning mining as a key driver of job creation and national revenue.

The agreement aligns with President Bola Tinubu’s broader economic reforms, which focus on diversifying the economy through investments in sectors like mining, agriculture, and renewable energy. Experts believe that South Africa’s advanced geospatial and geological capabilities could greatly enhance Nigeria’s mining regulation, resource management, and investor appeal.

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Although specific implementation steps have yet to be revealed, both countries have agreed to deploy technical teams in the near future. Initial work will likely begin with pilot projects in mineral-rich states such as Kaduna, Nasarawa, and Zamfara—areas already active in artisanal mining.

Overall, the partnership strengthens Nigeria-South Africa ties and reflects a practical shift toward regional collaboration and industrial resilience amid global market uncertainties.