Revitalising Nigeria’s Mining Sector: The Role of Solid Minerals Corporation in FDI Attraction
The Right Honourable Minister of Solid Minerals, Dr. Oladele Alake, has emphasized the crucial role of a solid minerals corporation in attracting both local and foreign investments to the sector, in alignment with his vision to reinvigorate and revolutionize Nigeria’s mining industry for rapid advancement.
During an interview with the Consumer News and Business Channel (CNBC), Alake underscored the importance of his advocacy visit to the mining conference in Perth, Australia, where he sought to position Nigeria as a premier destination for mining, not only in Africa but globally. At the conference, he championed the deliberate policies and plans of the Nigerian government designed to attract local and foreign investors to the sector, including the establishment of the Nigerian Mining Corporation, a specialized entity for engaging in joint ventures with multinational companies.
The minister articulated Nigeria’s transition from a hydrocarbon-reliant economy to renewable energy as a pathway to growth in the untapped solid minerals sector. He highlighted the need to diversify revenue sources to bolster the country’s GDP, especially in light of Nigeria’s historical dependence on a singular source of income.
Alake further expanded on the government’s commitment to fostering public-private partnerships for infrastructure development and capacity-building. Integral to this roadmap is the generation of comprehensive geophysical data, which will be globally marketed to attract crucial investments into Nigeria’s mining sector.
Regulatory reforms, security, structuring artisanal miners, and the role of data in the solid minerals industry were emphasized by Alake. His vision is to leverage these reforms and data generation to significantly enhance the sector’s contribution to Nigeria’s GDP.
The proposed Nigerian Mining Corporation is expected to play a pivotal role in efficiently harnessing the country’s mineral resources. Currently, the sector operates in a relatively disorganized manner, with the government often not receiving its due. Alake believes that the establishment of the corporation will imbue order and global best practices into the sector.
According to Alake, “An SPV like the Nigerian Mining Corporation (NMC) will go a long way to entirely regulate and sanitize the sector, and act as a government face with multinationals engaged in joint venture arrangements: so that Nigerians will have a stake in all of the ventures that go in that sector. That is the role the corporation is going to play, and it is going to be seriously sanitized with efficient governance structures”.
The minister reaffirmed his commitment to rectifying past missteps as Nigeria progresses with the revival of the NMC. He envisioned a system akin to those in developed societies where special purpose vehicles (SPVs) interface on behalf of the government.
Addressing the issue of illegal miners, Alake elucidated that the 30-day ultimatum given to them aims to formalize their activities by joining cooperatives. This transition will enhance sector regulation and align with the proposed inter-agency security force, which will work to sanitize the industry after the expiration of the ultimatum.
The establishment of a solid minerals corporation signifies a significant stride towards revitalizing Nigeria’s mining sector, attracting foreign investment, and ensuring proper regulation and governance. Alake’s vision aligns with Nigeria’s broader efforts to diversify its economy and establish sustainable sources of revenue for the country’s future growth and development.
