Mining Week 2025: Experts push for equity funding to unlock Nigeria’s Mineral Wealth

By: Goodluck E. Adubazi, Abuja.

The day started with a warm welcome from Hajiya Fatima Umaru Shinkafi, CEO of the Solid Minerals Development Fund (SMDF), followed by a Government Keynote from Hon. Dr. Oladele Henry Alake, Minister of Solid Minerals Development, setting the stage for Nigeria Mining Week with insights on the future of the country’s mining sector.

Stakeholders at the Nigeria Mining Week 2025 have called for a strategic shift towards equity-based financing as the key to revitalizing the country’s solid minerals sector.

During a high-level Investment and Financing Panel Session held on Wednesday, 15th October, 2025, at the Aso Hall of the Abuja Continental Hotel, experts agreed that equity capital remains the most viable route to attract investment and sustain mining development in Nigeria.

The session, moderated by Adamu Waziri, Senior Advisor on Mining Policy to the Honourable Minister of Solid Minerals Development, featured top representatives from the Solid Minerals Development Fund (SMDF), policymakers, and private sector investors.

Panelists emphasized that traditional debt financing is ill-suited for the high-risk nature of early-stage exploration. They argued that the mining ecosystem must embrace equity participation, especially at the exploration and feasibility stages.

“At the stage we are now, equity funding is what is most needed,” one speaker stressed. “Banks and financial institutions like BOI can’t take the kind of risks that exploration requires. Out of 100 exploration projects, only one might succeed.”

According to the SMDF, the Fund is pioneering mechanisms to crowd in equity capital from high-net-worth individuals (HNIs) and institutional investors to support junior mining companies — a critical segment in resource discovery and project development.

Panelists also highlighted the credibility crisis in geological data and reporting. Many operators reportedly present laboratory analyses that fail to reflect actual subsurface conditions.

“We see fascinating lab results that don’t represent reality,” an expert lamented. “The geology of Nigeria is tricky and vastly different from Ghana or Kenya. Without verified data, investors lose confidence and funds get wasted repeating exploration work.”

Speakers urged operators to engage competent geologists and certified reporting professionals under recognized global standards such as JORC and SAMREC, ensuring that exploration reports meet international benchmarks and can attract foreign capital.

Nigeria’s geological structure, panelists noted, presents unique challenges for mineral discovery. Despite substantial investments, few deposits have been found in economically viable quantities.

“The veins are yet to be discovered in economic quantities,” one speaker explained. “Without comprehensive subsurface data, the sector will remain stagnant.”

The experts cited Segilola Gold Mine as a case study — a company that began as a junior exploration firm listed on the Toronto Stock Exchange (TSX) and the AIM Market, leveraging international equity markets to finance its operations.

The Solid Minerals Development Fund unveiled plans to launch new grant and equity-support programs to stimulate exploration and reduce project risks.

“Our funding doesn’t come as debt or traditional equity,” SMDF officials explained. “We share responsibility with the project owners until financial close. We only get paid when the project succeeds.”

They added that SMDF is prepared to co-finance base equity requirements for projects seeking debt financing from institutions like the Africa Finance Corporation (AFC). The Fund aims to offer longer tenures, lower returns, and greater flexibility to help sponsors meet debt-equity ratios and avoid breaching debt service coverage ratios.

Dr. Emeka Agwu, Chairman/CEO of PJ-IC International, who fielded questions from journalists after the session, echoed the panel’s sentiments, aligning his views with the call for equity-led growth in Nigeria’s mining industry.

“If we cannot attract equity investors, there will be no mining industry in Nigeria,” Dr. Agwu affirmed. “The government alone cannot unlock these resources. We need competent people and patient capital.”

As Nigeria seeks to diversify its economy through solid minerals, the consensus from the 2025 Nigeria Mining Week is clear: equity funding, credible data, and professional competence are the cornerstones of a sustainable mining revolution.

The message from the panelists was unmistakable — it’s time to dig deeper, not just for minerals, but for investor confidence and long-term value creation.