The Solid Minerals Development Fund (SMDF), on Tuesday, reiterated that mining finance remains the engine that converts geological potential into jobs, industrial capacity, revenue and national prosperity.

It also announced that Nigeria’s mining sector has risen from contributing less than one percent to 4.6 percent of the nation’s Gross Domestic Product (GDP).

The Executive Secretary of SMDF, Hajia Fatima Umaru Shinkafi, disclosed this in Abuja, during the inaugural Ore Reserves Development Forum (ORDF) Inception Workshop, stressing that sustainable growth in the sector depends on credible financing structures and investment-ready projects.

The workshop themed “Building a Sustainable Mining Finance Framework for Nigeria,” brought together financiers, regulators, geoscientists, mining operators, and policymakers to design a unified pathway for financing Nigeria’s mining value chain.

Shinkafi, represented by Dr. Martina Ananaba, noted that Nigeria is richly endowed with strategic minerals in commercial quantities across all 36 states and the FCT.

She said the improved contribution of the sector reflects the sweeping reforms introduced by the Minister of Solid Minerals Development, Dr. Dele Alake, but stressed that Nigeria is only at the beginning of its transformation journey.

She said: “Nigeria is endowed with strategic and precious minerals, spread across its 36 states and the FCT, and many are in commercial quantities.

“Due to ongoing policy and structural reforms by the Honourable Minister, Dr Dele Alake, the sector which previously contributed less than 1% to the nation’s GDP now contributes 4.6%, but still lesser when compared to other mineral-rich nations like South Africa and Ghana (at around 6%).

“We believe that Nigeria today mirrors Saudi Arabia a decade ago, Australia in the early 2000s, and Botswana in the 1980s each at the cusp of transforming resource wealth into diversified national growth. With an estimated $700 billion in mineral potential, Nigeria is positioning mining as a new economic pillar.

“Hence, to achieve appropriate scale and deliver on its potential, a high level investment process of going through proper codifying, data assemblage and evolving order to the exploration and development process is required.”

In his remarks, ORDF Chairman, Malami Uba Saidu, noted that the forum was designed to close gaps in ore reserve classification, technical capacity and standardized reporting, factors that prevent Nigerian mining companies from meeting international financing criteria.

He added that security issues around mining zones are not unique to Nigeria, noting similar patterns in resource-rich regions globally.

Saidu said: “A mineral can only evolve into a reserve, and attract investment, when there is industry-wide harmony, credibility, and accepted standards.

“In Nigeria, we now have clear evidence that mineral-led growth is possible. That again is the whole essence of ORDF. Until you know the true value of what lies beneath your soil, you cannot price your assets, attract investment, or build an efficient mining ecosystem.

“The data on paper must match the reality of your subsoil. This conference will help establish that pathway, guiding genuine miners, exploration firms, and operators on how to properly define, certify and grow the value of the licenses and mineral assets they hold.”

Speaking on behalf of the Fund, Technical Advisor Abdulmajeed Oyeyemi Amussah said SMDF exists to de-risk mining projects and provide funding that transforms mineral potential into national prosperity.

He explained that because many Nigerian deposits are shallow, informal miners dominate, making it difficult to attract structured finance.

He said: “Our job is to convert informal extraction into formal, productive ventures. Every project we support goes through thorough technical, environmental and financial vetting to ensure credibility.”

Also speaking, a finance expert from Montt Capital, Jon Callagan, projected that mining could overtake oil and gas in Nigeria within 25 years.

Callagan said: “The government has created an enabling environment. The next step is for investors to put money into exploration, because without exploration, there can be no mining and without risk capital, there can be no exploration.”

He noted that experts are working with NGX and SEC to replicate the investment structures of the Australian Stock Exchange (ASX), the Toronto Stock Exchange (TSX), and London’s AIM, where most global mining assets raise capital.