Nigeria has announced the discovery of a world-class, polymetallic deposit in Kaduna State, with government experts saying it’s one of the country's most important critical minerals discoveries in recent years. Located around the pegmatite region of Gidan Waya in the Jema'a Local Government Area, the deposit contains nickel, copper, gold, platinum group metals and rare earth elements. The discovery was made by Steron Mining, with the Nigerian Geological Survey Agency (NGSA) confirming the find. Kaduna State is renowned for the exceptional purity and grade of its platinum, lithium and other associated rare earth elements. Alongside the Kaduna announcement, Steron Mining recently discovered 3.3 million metric tonnes of lithium reserves at its project near Abuja, with total mineral resources estimated at 94.8 million tonnes. Crude oil remains Nigeria’s primary source of foreign exchange, generating ?20.22 trillion ($14.66 billion) in export revenue during the first five months of the current year. But the government is working to build mining into a second major source of revenue. Fiscal collections from the solid minerals sector reached ?63.92 billion ($46.3 million) in the first 11 months of 2025, up from ?38 billion during all of 2024. To accelerate that growth, Abuja has introduced a series of reforms aimed at curbing illegal mining, increasing government revenues and developing more than 40 commercially viable mineral resources, particularly lithium and other energy transition metals.The government now requires mining license applicants to submit plans for processing and refining minerals locally rather than exporting raw ore, with the goal of retaining more investment, jobs and economic value inside the country. It has also revoked more than 1,600 inactive or illegally held mineral titles, while the Mining Cadastre Office (MCO) has canceled more than 4,700 dormant, expired and illegally acquired titles to curb land banking and speculative hoarding.Not surprisingly, China is looking to stake out its claims on Nigeria’s burgeoning mining sector, particularly midstream and downstream processing. Jiuling Lithium Mining Company is backing a US $600 million processing facility located at the boundary of Kaduna and Niger states in northern Nigeria while Canmax Technologies is developing a US $200 million lithium processing facility in Nasarawa State, Nigeria. As a massive global supplier, Canmax Technologies oversees operations and integrates the output from Nasarawa directly into the international EV battery supply chain. The plant supports the Nigerian Federal Government's policy to discourage the export of raw, unprocessed solid minerals, forcing mining companies to retain economic value locally.China is Nigeria's largest import partner, dominating the supply of consumer goods, vehicles, electronics and building materials. Chinese firms have also set up major assembly plants and manufacturing hubs, including those in the Ogun-Guangdong Free Trade Zone. Chinese companies such as CNOOC hold significant stakes in lucrative offshore oil and gas licenses. Furthermore, Chinese firms are heavily involved in the power sector, securing multi-billion-dollar contracts for power plants and national electricity super grids. Meanwhile, China’s technology giants like Huawei and ZTE supply the backbone hardware for Nigeria's major telecom providers such as MTN, Airtel and Glo, and have won extensive national contracts for e-government and security infrastructure.That said, oil is likely to remain a major driver in Nigeria's economy for years to come. Previously, we reported that Nigeria is looking to increase crude oil production to capitalize on the supply gaps resulting from ongoing geopolitical tensions in the Middle East. The Nigerian National Petroleum Company (NNPC) Limited has set a target to increase oil production by ~100,000 b/d to 1.8 million bpd. Major energy firms are investing heavily in new drilling programs to scale up capacity, with the likes of Oando and Heirs Energies securing fresh capital for multi-well programs that will significantly boost both daily production and long-term reserves.The 650,000-barrel-per-day Dangote Refinery has fundamentally transformed Nigeria's oil sector by ending the country's decades-long reliance on imported fuel, easing pressure on the foreign exchange market, and positioning Nigeria as a net exporter of refined petroleum products across Africa and globally. The refinery meets Nigeria's daily domestic fuel demand with surplus output, shielding the country from volatile international oil supply chain disruptions. The facility has transformed Nigeria into a major regional energy hub, rapidly dispatching petroleum product cargoes to West, Central, and East Africa, as well as reaching international markets in the Americas.By Alex Kimani for Oilprice.comMore Top Reads From Oilprice.comVLCC Earnings Near $470,000 a Day as Hormuz Hopes Drive Tanker FrenzyGulf Producers Race to Load Oil and LNG as Hormuz Stays OpenPakistan Plans to Boost LPG Imports and Mulls Cheaper Oil Supply from Iran