Data limitations present another significant challenge. The country faces incomplete geological data on critical mineral deposits and limited understanding of its full resource potential. This knowledge gap undermines strategic planning and inhibits investor confidence. Additionally, value chain development is hindered by minimal legal frameworks for promoting domestic processing and limited incentives for value addition within Nigeria.
Environmental and social safeguards are also insufficient, providing inadequate protections for communities impacted by critical minerals mining and insufficient environmental standards specific to critical minerals extraction. The investment framework lacks targeted incentives for critical minerals development and has insufficient mechanisms to attract the technology and expertise needed to develop these resources responsibly and efficiently.
Global context and proposed legal and policy reforms
To address these challenges effectively, it is essential to examine how other countries are approaching critical minerals governance. Global trends in this field provide important context for Nigeria’s reform efforts. Countries worldwide are moving beyond traditional mining regulations toward more strategic frameworks that recognise the unique importance of these resources.
National security integration has become paramount, with countries developing strategic reserves and implementing supply chain protection measures. Supply chain resilience features domestic processing requirements and anti-concentration measures to prevent overdependence on single sources.
Sustainability integration is increasingly important in global mineral governance, with ESG compliance requirements and carbon footprint regulations becoming standard. Indigenous and community rights are receiving greater attention through strengthened consent requirements and mandatory benefit-sharing mechanisms. Public-private partnerships are emerging through co-investment models and risk-sharing frameworks that distribute the burden of development.
Drawing from these global best practices and addressing Nigeria’s specific challenges, several key reforms should be considered to protect and maximise the value of the country’s critical mineral resources:
First, Nigeria should establish a dedicated critical minerals legal framework by developing and enacting a Critical Minerals Act that specifically addresses the unique challenges and opportunities of these resources. The country needs to create a formal, science-based classification system for critical minerals relevant to Nigeria’s development needs and establish differential regulatory treatment based on mineral criticality.
Second, institutional capacity must be strengthened by creating a dedicated Critical Minerals Agency or Department within MMSD. This specialised unit would focus exclusively on critical minerals governance, ensuring these strategic resources receive the attention they deserve. A multi-stakeholder Critical Minerals Council should also be established to coordinate policy across government and industry. Additionally, specialised training programmes for regulators and inspectors would ensure proper oversight of this specialised sector.
Third, Nigeria must enhance its geological knowledge through a comprehensive National Critical Minerals Mapping Initiative to fully understand its resource potential. This would address the data limitations identified earlier and provide the foundation for strategic decision-making. Investment in modern geological survey technologies is essential for this effort, as is establishing public-private partnerships for exploration that can bring in technical expertise and funding.
Fourth, value chain integration policies are needed to move Nigeria beyond being merely a source of raw materials. This should include local processing requirements for critical minerals to capture more value domestically. Fiscal incentives for downstream activities would encourage investment in processing facilities, while creating special economic zones focused on critical minerals processing could fast-track industrial development.
Beyond these four core reforms, complementary measures are also needed. The investment framework requires specific attention through targeted incentives for critical minerals projects and risk-sharing mechanisms for strategic minerals development. Environmental and social governance must be strengthened with specific standards for critical minerals operations and enhanced community development agreement requirements. Combating illegal mining through stronger penalties and formalisation pathways for artisanal miners is crucial to ensure that Nigeria’s critical minerals benefit the treasury rather than shadow economies. Finally, international partnerships through bilateral agreements with technology-manufacturing countries would help position Nigeria as a preferred supplier in global value chains.
Conclusion
The global race for critical minerals presents Nigeria with a historic opportunity to transform its abundant geological resources into drivers of economic development. By implementing thoughtful legal and policy reforms as outlined above, the country can move beyond being merely a source of raw materials to become a key player in global critical mineral value chains. These reforms should be guided by several key principles: a strategic vision that recognises critical minerals as national assets essential for future development; sustainability approaches ensuring extraction benefits present and future generations; value addition strategies that capture processing value within Nigeria; community benefit frameworks that ensure local populations share in resource wealth; and global integration efforts that position Nigeria as a responsible supplier in international supply chains.
By implementing comprehensive legal and policy reforms focused on critical minerals, Nigeria can secure not just the minerals themselves, but also the foundation for technological advancement, economic diversification, and sustainable development in the decades ahead. The stakes could not be higher – these resources represent the building blocks of the 21st century economy. As global demand surges and competition intensifies, countries with forward-looking legal and policy frameworks will be best positioned to benefit from the critical minerals revolution. Nigeria has the geological endowment—now it needs the governance framework to match.
Concluded.
Okeke is the Associate Partner, Olisa Agbakoba Legal and Ugwuezi an Associate of the firm.
