Nigeria’s ambition to become a major player in the global critical minerals value chain received a significant boost on Thursday as the Africans for Africa (AFA) Initiative and Steron International Resources Limited entered into a strategic partnership to accelerate the development and local processing of lithium and rare earth deposits in the country.
The partnership was formalised through the signing of a Memorandum of Understanding (MoU) at the African Natural Resources and Energy Investment Summit held in Abuja.
Under the agreement, Steron’s lithium and rare earth project in Wasa has been designated as a potential pipeline project under the AFA Mining Fund I, a private equity investment vehicle established to support African-owned mining ventures and promote value addition across the continent.
The collaboration marks a major milestone for Nigeria’s mining industry at a time when global demand for critical minerals continues to rise due to the rapid expansion of electric vehicles, renewable energy technologies, battery storage systems, advanced electronics, and other high-tech manufacturing sectors.
As part of the arrangement, Steron International Resources Limited will receive technical optimisation support and access to investment capital to accelerate project development while ensuring compliance with internationally recognised environmental, social, and governance (ESG) standards.
A key component of the partnership is the implementation of the AFA Initiative’s “51 Per Cent Total African Benefit” model. The framework is designed to ensure that a majority of the economic value generated from mineral resources remains within Africa through local processing, domestic supply chains, skills development, and investments in host communities.
Speaking after the signing ceremony, the Managing Director and Chief Executive Officer of Steron International Resources Limited, Sadiq Abubakar Omar, described the partnership as a demonstration that Nigerian mining projects can achieve global competitiveness while delivering meaningful benefits to local communities.
He stated that responsible mining and sustainable economic development must go hand in hand, noting that investors increasingly demand sustainability while communities seek inclusion and shared prosperity.
According to Omar, the agreement reflects the emergence of a new generation of African entrepreneurs committed to taking ownership of the continent’s natural resources and driving industrial growth.
He stressed that Africa can no longer remain merely a supplier of raw materials while other regions reap the benefits of processing and manufacturing.
“Our generation is determined to take charge of Africa’s resources and utilise them for the benefit of our people. We have a responsibility to ensure that these resources create opportunities for host communities and contribute to national development,” he said.
Omar highlighted the growing importance of rare earth elements, describing them as essential components of modern technology and the future global economy.
He noted that rare earth minerals are used in a wide range of products, including inverter systems, electronics, renewable energy technologies, electric vehicles, and other advanced industrial applications.
The Steron chief executive disclosed that the company has identified three major rare earth element deposits in Nigeria’s Middle Belt and plans to commit substantial resources towards their development.
He explained that the company’s long-term objective extends beyond mineral extraction to building the technical expertise, intellectual property, and industrial capacity required to process minerals into finished products within Nigeria and across Africa.
According to him, Africa’s position as both a major source of critical minerals and one of the world’s largest consumer markets presents a unique opportunity to establish local manufacturing industries and retain greater value from natural resources.
Omar also acknowledged the challenges facing young African entrepreneurs, noting that age-related perceptions often create barriers despite their capacity to drive innovation and development.
He commended the Federal Government’s ongoing reforms in the solid minerals sector, particularly the efforts of the Minister of Solid Minerals Development, Dr. Dele Alake, describing the reforms as timely and strategically aligned with the global energy transition.
Industry experts believe that Nigeria possesses substantial deposits of critical minerals, including lithium, rare earth elements, cobalt, and graphite. With adequate investment in exploration, processing, and value addition, the country is well positioned to emerge as a leading supplier of minerals required for the clean energy transition while creating jobs, attracting investment, and stimulating industrial growth.