Nigeria launches grant scheme to accelerate mining of battery minerals

Nigeria is rolling out a grant programme through the Solid Minerals Development Fund that will subsidise up to 70% of the costs for exploration projects undertaken by mining licence holders. Executive Secretary Fatima Umaru Shinkafi explained that the scheme is aimed at junior mining firms and focuses on locating new deposits of over 44 minerals, especially those critical for batteries and digital infrastructure such as lithium, nickel, cobalt and rare earths.

The government hopes the effort will boost local processing, reduce reliance on raw-material exports and diversify the economy beyond oil, which currently provides 95% of foreign-exchange earnings. The initiative builds on a partnership with the Africa Finance Corporation, which seeks to lower investment risk and draw private capital, with an alumina refinery project slated for a final investment decision next year. Recent milestones, including a Chinese-built lithium plant in Nasarawa state, underscore the sector’s growing momentum. The fund has already received hundreds of applications since its launch in June and is evaluating multiple projects for funding.