Nigeria’s Minister of Solid Minerals Development Seeks Foreign Investment at Mines and Money Conference in London
Nigeria’s Minister of Solid Minerals Development, Oladele Alake, recently presented a persuasive argument for increased foreign investment in the country’s mining industry. Addressing attendees at the Mines and Money Conference in London, Alake underscored the unique benefits of investing in Nigeria, including low production costs and an abundance of untapped minerals.
Recent reports by audit firm KPMG have indicated a steady rise in the mining sector’s contribution to Nigeria’s GDP, increasing from 0.3 percent to 0.85 percent over the past year. This reflects a year-on-year growth of 0.63 percent, highlighting the sector’s potential for significant economic impact.
Alake highlighted Nigeria’s geological richness, boasting over 44 distinct mineral types in exploitable quantities across more than 500 locations. He also noted the growing global importance of Lithium as a strategic mineral, suggesting new investment opportunities in Nigeria’s mining sector.
The Minister emphasised the government’s dedication to creating an accommodating environment for solid minerals development, including efforts to streamline procedures and attract foreign investors. Recent initiatives in this regard include the Airborne Geophysical Survey, a memorandum of understanding with German firm Geoscan to gather more data on solid minerals, and the launch of a new funding facility by the Africa Finance Corporation and the Solid Minerals Development Fund.
In addition to showcasing the country’s abundant mineral resources, Alake reiterated the government’s focus on ensuring that mining operations benefit local communities and lead to the processing of raw minerals, rather than wholesale exportation. He stressed the importance of solid minerals beneficiation and value addition as a means of fostering sustainable growth within the mining industry. By adding value to raw materials, Nigeria can create higher value products, generate employment opportunities, and increase the sector’s overall profitability and contribution to the nation’s GDP.
Furthermore, Alake urged foreign investors to support the socio-economic development of the communities where they operate, making mining more mutually beneficial. He mentioned the recent launch of revised guidelines for Community Development Agreements, which provide for social amenities, educational support, and health and safety environmental facilities.
The Minister’s compelling call for increased foreign investment in Nigeria’s mining industry comes at a crucial time, as the country seeks to leverage its vast mineral resources for economic growth and development. With a clear commitment to creating a conducive business environment and ensuring that mining operations benefit local communities, Nigeria presents promising opportunities for foreign investors seeking to tap into the potential of the country’s rich mineral landscape.
