Concerns have emerged over Nigeria’s new mineral-investment framework with the United States, with the Corporate Accountability and Public Participation Africa (CAPPA) calling for closer scrutiny of its potential economic, environmental and community impacts.
The framework is being presented as an opportunity for Nigeria to unlock an estimated $700 billion in mineral resources, attract investment and move the country beyond the export of raw minerals towards greater domestic processing and industrial development.
However, CAPPA said the initiative also raises critical questions about whether Nigeria would ultimately become a major industrial beneficiary of its mineral wealth or primarily serve as a supplier to the United States’ critical-minerals strategy.
In a statement to its partners, CAPPA highlighted concerns over environmental protection, accountability and the rights of communities hosting mining operations.
Among the questions raised were who would bear responsibility if mining activities contaminated farmland or water sources, who would be responsible for restoring degraded land after extraction, and what would happen to mining sites and affected communities if investors eventually leave.
CAPPA also questioned the extent to which host communities would participate in decisions concerning mining activities and how much of the economic value generated from Nigeria’s mineral resources would remain within the communities and the country.
The organisation said these issues require careful examination as Nigeria seeks to position its mineral sector as a major driver of economic growth and industrialisation.
The debate comes amid growing efforts to attract foreign investment into Nigeria’s critical-minerals sector, with the government seeking to leverage the country’s mineral deposits for economic diversification and industrial development.
CAPPA said its examination of the Nigeria-US mineral-investment framework considers these issues and other implications of the emerging partnership.
The organisation stressed the importance of ensuring that mineral development delivers meaningful benefits to Nigerians while addressing environmental and social risks associated with extraction.
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