Boosting Investment in Nigeria’s Mining Sector
The Nigerian government is actively seeking additional investment in its mining sector, highlighting advantages such as lower production costs and a wealth of untapped minerals. The appeal was made by Dr. Dele Alake, Minister of Solid Minerals Development, at the “Mines and Money Conference” in the United Kingdom. Dr. Alake assured potential investors of a conducive business environment and emphasized recent reports indicating significant growth in the sector’s contribution to Nigeria’s GDP.
Dr. Alake stated that Nigeria possesses a diverse range of mineral types found in exploitable quantities across over 500 locations. He also emphasized the inclusion of lithium as a crucial strategic mineral of global consequence. The Minister underscored the government’s commitment to reforms aimed at streamlining procedures and reducing obstacles to attract foreign investors.
Furthermore, recent data from the Airborne Geophysical Survey and a Memorandum of Understanding with German firm Geoscan will provide additional information on solid minerals across the country. Additionally, a new funding facility and access to finance through the Africa Finance Corporation and the Solid Minerals Development Fund have been cited as incentives for potential investors.
Dr. Alake also stressed the government’s policies regarding the local communities where mining operations take place. He highlighted the emphasis on beneficiation and value addition to raw materials as a means of creating higher value products, generating employment opportunities, and increasing the sector’s overall profitability and contribution to the nation’s GDP. The Minister also urged investors to support the socio-economic development of the communities where they mine, citing the recent inauguration of revised guidelines for Community Development Agreements.
In conclusion, the call for more investment in Nigeria’s mining sector is accompanied by an array of incentives and opportunities for potential investors. Dr. Alake’s address at the conference in the UK aimed to showcase the country’s commitment to creating a favorable environment for foreign investment in the mining industry. The appeal comes amidst a backdrop of promising growth and potential in Nigeria’s mineral sector, making it an attractive prospect for those seeking to expand their investment portfolios.
