Attracting Foreign Mining Investors: Nigeria’s Push for Lower Production Costs

Dr Oladele Alake, Nigeria’s Minister of Solid Minerals Development, presented a persuasive argument for foreign investment in the Nigerian mining industry at the Mines & Money Conference in London. His approach focused on the imperative need to reduce bureaucratic obstacles and enhance security in mining operations. The new commitments are aimed at enticing international stakeholders by showcasing the unique benefits of investing in Nigeria, including lower production costs due to surface mining and extensive untapped mineral reserves.

During his address, Dr. Alake referenced a recent KPMG report, which underscored the substantial growth of mining’s contribution to Nigeria’s GDP. The report indicated a rise from 0.3 per cent to 0.85 per cent, representing a year-on-year growth of 0.63 per cent. Furthermore, Dr. Alake highlighted Nigeria’s geological potential, with over 44 distinct mineral types distributed across more than 500 locations, including the strategic inclusion of lithium as a mineral of global significance.

The Minister outlined the government’s dedication to making Nigeria an appealing destination for foreign investors through reforms designed to streamline procedures and reduce barriers to entry. These efforts include recent advancements in acquiring essential data on solid minerals through partnerships with reputable firms, as well as providing access to finance through established funding facilities.

Dr. Alake also stressed the government’s policies on ensuring that mining operations benefit local communities and add value to raw minerals through beneficiation, rather than extensive export. By emphasizing the importance of solid mineral beneficiation, he accentuated the potential for job creation, youth empowerment, and increased profitability in the mining sector.

Additionally, the Minister urged investors to actively contribute to the socio-economic development of the communities in which they operate, highlighting the need for mutual benefit. He pointed to the revised guidelines for the Community Development Agreement, which integrate provisions for social amenities, educational support, healthcare, safety, and environmental facilities to support local communities.

In conclusion, Dr. Oladele Alake’s message at the Mines & Money Conference was unequivocal — Nigeria is open for business in the mining sector. By leveraging the country’s natural resources and implementing reforms to attract foreign investment, Nigeria aims to foster sustainable growth and socio-economic development through the mining industry.

The efforts to lower production costs and create an accommodating environment for investment demonstrate Nigeria’s determination to become a key player in the global mining arena. As the country continues to make strides in solid minerals development, it presents an appealing opportunity for foreign investors seeking to capitalize on the potential of Africa’s largest economy.