Nigeria Takes Steps to Attract Foreign Investment in Mining Sector
Nigeria’s Minister of Solid Minerals Development, Dr. Oladele Alake, is actively seeking to attract foreign investors by offering reductions in mining production costs, and a firm commitment to enhancing the security of mining operations, as well as streamlining business procedures.
During his address at the Mines & Money Conference in London, Dr. Alake made a compelling case for increased investment in Nigeria. He highlighted the country’s advantages, including lower production costs due to surface mining, and its vast untapped mineral reserves.
Dr. Alake underscored the growth of Nigeria’s mining sector, referencing a report by audit firm KPMG, which revealed that mining’s contribution to Nigeria’s GDP rose from 0.3 per cent to 0.85 per cent last year, indicating a year-on-year growth of 0.63 per cent.
Furthermore, Dr. Alake detailed Nigeria’s wealth of over 44 distinct mineral types, present in exploitable quantities across more than 500 locations. He also noted the inclusion of Lithium as a strategic mineral, demonstrating the country’s responsiveness to emerging global trends.
The minister emphasized the government’s efforts to reform the sector and attract foreign investment through streamlined procedures and reduced bureaucratic obstacles. He also outlined recent advancements, such as the findings from the Airborne Geophysical Survey, a partnership 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.
Dr. Alake emphasized the administration’s commitment to ensuring that mining operations benefit local communities and lead to value addition, as opposed to the wholesale export of raw minerals. He highlighted the government’s focus on Solid Minerals Beneficiation and Value-Addition to promote sustainable growth and employment opportunities.
The minister urged investors to support the socio-economic development of the communities where they operate, highlighting the recently launched revised guidelines for Community Development Agreements, which include provisions for social amenities, educational support, and environmental facilities.
Nigeria’s efforts to attract foreign investment in the mining sector reflect the country’s dedication to economic growth and development. With its abundant mineral resources and strategic reforms, Nigeria is well-positioned to become an appealing destination for foreign mining investors.
