Nigeria’s mining industry is attracting investors worldwide, thanks to its rich deposits of gold, lithium, gemstones, and rare earths. But alongside the real opportunities lies a growing concern: fraudulent operators and illegal schemes targeting unsuspecting investors.
For smart investors, avoiding these pitfalls comes down to one thing: due diligence. In this article, we’ll share actionable tips to help you invest with confidence and security in Nigeria’s solid minerals sector.
1. Verify Mineral Titles with the MCO
Every legal mining project in Nigeria must be registered with the Mining Cadastral Office (MCO). Titles include exploration licenses, small-scale mining leases, mining leases, and quarry licenses.
👉 Tip: Always request the license number and verify it directly with the MCO database or through a trusted local partner. Fake licenses are one of the most common scams.
2. Conduct On-Site Verification
Never rely on paper documents or digital scans alone. Fraudsters often circulate outdated or falsified geological surveys.
👉 Tip: Hire independent geologists or consultants to visit the site, confirm mineral availability, and assess whether operations are actually ongoing.
3. Check the Company’s Corporate Registration
Every mining company in Nigeria must be registered with the Corporate Affairs Commission (CAC). Some fraudsters operate under shell companies or unregistered names.
👉 Tip: Conduct a CAC search and ensure the company has proper directors, a registered address, and up-to-date filings.
4. Be Wary of Unrealistic Promises
If someone claims “guaranteed returns” or offers prices that are far below international benchmarks, take it as a red flag. Mining is a high-reward sector but never a no-risk business.
👉 Tip: Compare claims against market realities and demand transparency in financial projections.
5. Engage Trusted Local Partners
Nigeria is a relationship-driven market. Having credible local experts by your side is the most effective way to avoid fraud and manage risks.
👉 Tip: Use structured consultancy services like the Nigerian Mineral Exchange Investment Navigator to access screened, vetted, and legally compliant projects.
How We Help You Invest Safely in Nigerian Mining
At the Nigerian Mineral Exchange, our role is to protect investors from risk while opening doors to profitable, legal opportunities through:
1. The Nigerian Mining Investment Navigator
We vet projects, conduct site visits, and deliver actionable due diligence reports tailored to your goals.
👉 Book your consultation now on Selar
2. Mining & Mineral Trading Company Setup (Nigeria)
We help you establish a compliant business structure, handle registrations, and avoid costly mistakes.
👉 Start your setup today on Selar
3. Unlocking Nigeria’s Mineral Wealth: 113 Lucrative Business Ideas (Ebook)
Gain insider knowledge of opportunities beyond mining operations—including trading, logistics, and services.
👉 Download your copy instantly on Selar
Final Thoughts
Fraud is a reality in every emerging market like Nigeria—but it can be avoided. By verifying licenses, conducting site visits, checking company registrations, and partnering with trusted local experts, you can protect your capital and position yourself for success.
Remember: due diligence isn’t a cost—it’s your greatest investment safeguard.
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