Practical Transactional Issues in Financing Mining Projects in Nigeria

Nigeria’s solid minerals sector has been underfinanced for as long as it has been under-explored. The Federal Government’s Solid Minerals Roadmap, the establishment of the Nigeria Solid Minerals Company, the reconfiguration of the fiscal framework under the Nigeria Tax Act 2025, the intensifying global competition for critical minerals, and the continued inflow of Chinese, Indian, and increasingly Western capital have, however, begun to reshape that landscape in material respects. The question is no longer whether capital is available to Nigeria’s mining sector; it is whether the Nigerian legal and regulatory architecture can accommodate that capital on terms acceptable to its providers. This article examines the practical transactional issues that arise in financing mining projects in Nigeria, the specific legal and commercial obstacles that sponsors, lenders, and their counsel must navigate to bring a transaction to financial close, and the structural reform agenda those obstacles imply.