TUE JULY 28 2026-theGBJournal| Kaduna State has become the first Nigerian state-owned mining company to secure an exploration and development partnership with the Africa Finance Corporation (AFC), marking a significant milestone in efforts to attract institutional capital into Nigeria’s largely underdeveloped solid minerals sector.
The breakthrough follows the signing of two Memoranda of Understanding (MoUs) worth US$500 million between the Africa Finance Corporation and the Kaduna Mining Development Company Limited (KMDC), laying the foundation for large-scale mineral exploration and project development across the state.
The agreements were signed on Monday after high-level talks between AFC President and Chief Executive Samaila Zubairu and Kaduna State Governor Uba Sani, underscoring growing investor interest in Nigeria’s strategy to diversify its economy beyond oil through commercial mining.
Under the partnership, AFC will collaborate with KMDC to identify and develop commercially viable mining assets, while also working with the Jema’a Resource Project to advance the Gidan Waya Mining Project towards commercial production.
The initiative will focus on the exploration and development of a broad portfolio of strategic minerals, including gold, lithium, platinum group metals (PGMs), nickel, copper, cobalt, silver and rare earth elements—commodities that are increasingly sought after globally because of their role in electric vehicles, battery manufacturing and clean energy technologies.
The transaction represents one of the most significant institutional commitments to a state-led mining venture in Nigeria and positions Kaduna as a frontrunner in efforts to build a commercially viable mining industry capable of attracting long-term private capital.
For AFC, the partnership aligns with its broader mandate of financing Africa’s industrialisation through investments in strategic sectors, while for Kaduna it provides access to technical expertise, project development capabilities and financing required to transform mineral deposits into bankable commercial operations.
State officials said the partnership is expected to catalyse fresh investment into Kaduna’s mining sector, stimulate downstream mineral processing, create jobs and strengthen local value addition, while supporting sustainable economic growth.
The agreement also signals a shift in Nigeria’s mining landscape, where sub-national governments are increasingly seeking partnerships with development finance institutions and private investors to accelerate resource development within the framework of federal mining regulations.
By becoming the first state-owned mining company to secure an exploration and development partnership with AFC, Kaduna is positioning itself at the forefront of Nigeria’s ambitions to develop its vast critical minerals resources and establish mining as a meaningful contributor to economic diversification, export earnings and industrial growth.
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