Attracting Foreign Investment in Nigeria’s Mining Sector

The Nigeria Minister of Solid Minerals Development, Dr Oladele Alake, delivered a compelling speech to potential foreign investors in the mining industry at the Mines & Money Conference in London, United Kingdom. The Minister emphasized the country’s commitment to facilitating business transactions and ensuring the security of mining operations to attract more investment in Nigeria’s mining sector.

Dr. Alake highlighted the unique advantages of investing in Nigeria, including lower production costs resulting from surface mining and the presence of billions of dollars’ worth of untapped minerals. He also referenced a report by audit firm KPMG, which indicated a 0.63 per cent year-on-year growth in mining’s contribution to Nigeria’s GDP, from 0.3 per cent to 0.85 per cent.

The Minister reiterated the abundance of mineral resources in Nigeria, with over 44 distinct mineral types spread across more than 500 locations. He also emphasized the inclusion of lithium as a crucial strategic mineral, in response to emerging global trends.

In his address, Dr. Alake showcased the government’s efforts to create a conducive environment for solid mineral development, including the recent revelation of fresh data from the Airborne Geophysical Survey, a memorandum of understanding with German firm Geoscan to gather more data on solid minerals, and a new funding facility launched by the Africa Finance Corporation and the Solid Minerals Development Fund.

Moreover, Dr. Alake stressed the government’s policies on community benefits and local processing of minerals, rather than wholesale export. He encouraged investors to support the socio-economic development of mining communities, as reflected in the revised guidelines for the Community Development Agreement, which provide for social amenities, educational support, health and safety, and environmental facilities.

The minister’s call for foreign investment in Nigeria’s mining sector aligns with the government’s ongoing reforms to streamline procedures and reduce hurdles for foreign investors. With a focus on solid mineral beneficiation and value addition, the government aims to create higher-value products, generate employment opportunities, and enhance the sector’s overall profitability and contribution to the nation’s GDP.

Dr. Alake’s message to global stakeholders in the mining industry underscores Nigeria’s commitment to attracting foreign investment and fostering sustainable growth in the mining sector. As the government continues to implement reforms and create an enabling environment for mining operations, the country presents promising opportunities for potential foreign investors.