Nigeria’s Bala Wunti Warns Africa Against Repeating Oil-Era Mistakes in Critical Minerals

Africa must avoid repeating the mistakes of the oil industry by exporting critical minerals in raw form while allowing other countries to capture the greater profits generated through processing and refining, Nigerian energy executive Bala Wunti has warned.

Wunti’s message comes as African countries seek to capitalise on growing demand for minerals essential to electric vehicle batteries, renewable energy technologies and advanced manufacturing. Lithium, cobalt, graphite and rare earth elements are increasingly important to global supply chains, creating an opportunity for mineral-rich nations to strengthen their industrial capacity and retain more economic value.

However, exporting these resources without developing domestic processing industries risks leaving African economies dependent on raw material sales while higher-value activities take place elsewhere.

The warning highlights a longstanding challenge for resource-rich African countries: converting mineral wealth into sustainable industrial development, skilled employment and broader economic growth.

A key consideration is the changing competition for critical mineral supplies. REEx’s Transition Vulnerability Window identifies a period when demand from Western economies for mineral supplies outside China exceeds the production capacity available to meet that demand. This potential imbalance could strengthen the negotiating position of mineral-producing countries seeking investment in local processing and manufacturing.

For African governments, the opportunity lies in using this period to secure partnerships that support domestic beneficiation rather than relying solely on increased mineral exports. However, turning that opportunity into lasting economic benefits will require more than geological resources.

Nigeria, for example, has identified 44 types of minerals, representing considerable geological potential. Yet the presence of mineral deposits alone is insufficient to attract the investment needed to establish commercially viable mining and processing industries.

Investors require verified reserves, dependable infrastructure, competitive processing costs and predictable regulatory frameworks before committing significant capital. Reliable electricity, transport networks and clear policies will therefore be important in determining whether Nigeria and other African countries can develop competitive mineral value chains.

The challenge extends across the continent, where governments are seeking to attract investment while ensuring that resource development generates tangible benefits for local economies.

Developing domestic refining and processing capacity could allow African countries to participate in more profitable stages of critical mineral supply chains. It could also create opportunities for industrial development, technical skills and employment beyond the extraction sector.

Wunti’s warning underscores the importance of approaching the critical minerals boom with a long-term industrial strategy. As international demand grows, African countries face an opportunity to negotiate investment arrangements that strengthen local economies rather than simply increase exports of unprocessed resources.

The decisions made now could help determine whether Africa becomes primarily a supplier of raw materials or a more significant participant in the industries built around its mineral wealth.