How a $400 Million Processing Plant Could Transform Nigeria's Rare-Earth Sector

This surge comes as the West African nation aims to triple its rare-earth processing capacity — from 6,000 to 18,000 tonnes annually — for value-added production, signaling a seismic shift in Africa’s critical minerals landscape.

Decades ago, Nigeria’s minerals were extracted with little fanfare, as the activities of artisanal miners and middlemen slowed progress in the mining sector, and the nation saw scant revenue.

Years later, reforms began: licensing was simplified, security marshals were deployed, and access to mining permits was eased. Despite these measures, progress remained gradual.

This year, building on those foundations, President Bola Tinubu’s administration signed a $400 million deal with Hasetins Commodities Limited to construct Africa’s largest rare-earth plant in Nasarawa State. The project is expected to boost production, create over 10,000 jobs, retain economic value domestically, and integrate small-scale miners into formal supply chains.

Over the next decade, Nigeria plans further expansions through technology-transfer partnerships. The goal is to meet global demand for rare earths used in electronics and clean energy, while fostering local R&D, university collaborations, and innovation centers. This strategy aims to position Nigeria as a reliable, independent supplier on the world stage.

To shed light on the broader impact of this landmark deal, African Currents turned to Dr. Dateer Dayi Damulak, chief economist and public policy analyst at Nigeria’s Federal Ministry of Finance, Abuja, for his expert perspective on its implications for Nigeria’s solid minerals industry.

"The rare-earth metals is the in thing now in the world. The world is scrambling for the rare-earth metals to develop the technologies and whatever that is surrounding it. And Nigeria so happened to be blessed with a huge deposit of these. Nigeria is a primary raw material mining economy, in the sense that these minerals are mined and exported in raw form. Without value addition, there is no value for money, as it were. So, the defining moment is here. Everything is always driven by vision and the in-country processing initiative and the economic diversification of government is the driving force here. So, driving industrialization and value addition in the solid minerals sector will help promote Nigeria's economy and take it to the next level, bolster investors' confidence and anchored in recent reforms within the sector," Dr. Damulak explained.

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