Unlocking the Potential of Nigeria’s Mining Sector: AFC and SMDF Join Forces
The Africa Finance Corporation (AFC) and the Solid Minerals Development Fund of Nigeria (SMDF) have forged a strategic partnership aimed at addressing the challenges facing Nigeria’s mining industry. The primary objective of this collaboration is to mitigate the risks associated with the mining sector and elevate artisanal miners to an industrial level of operation.
Nigeria is renowned for its abundant mineral resources, which hold significant potential for mining development. However, a lack of expertise and funding has impeded the progress of mining projects in the country. The partnership between AFC and SMDF seeks to bridge this gap and unlock the enormous potential of Nigeria’s mineral resources.
A pivotal outcome of this collaboration is the development of the AFC-SMDF Investment Manual. This comprehensive document will furnish project sponsors with a clear understanding of the joint project development facility, its objectives, and the specific prerequisites for project consideration. Additionally, it will outline the appraisal checklist for project evaluation.
To streamline the project submission process, AFC and SMDF have established a dedicated portal for project sponsors. The portal will be overseen by PricewaterhouseCoopers (PWC), a global professional services firm, to screen and conduct initial evaluations of projects before submitting them to AFC and SMDF for further assessment.
Moreover, AFC and SMDF have enlisted the expertise of Wood Mackenzie, a prominent global research and consulting firm, to undertake a comprehensive study on the feasibility of establishing a midstream processing plant in Nigeria. The study will focus on critical minerals such as Lithium, Nickel, and other energy transition metals abundant in the country.
Samaila Zubairu, President & CEO of AFC, underscored the significance of this partnership in unlocking the potential of Nigeria’s mineral resources and harnessing renewable energy sources for local processing. He also emphasized the importance of sustainable development and economic prosperity in Nigeria and Africa.
Fatima Umaru Shinkafi, Executive Secretary and CEO of the Solid Minerals Development Fund, expressed gratitude for the support received from the Honourable Minister and reaffirmed the alignment of these initiatives with the Renewed Hope Agenda and the Ministry’s Transformation Agenda.
The partnership between AFC and SMDF represents a significant stride in harnessing Nigeria’s mineral wealth and positioning the nation as a prominent player in the global mining industry. With a proven track record of investing in mining projects across Africa, including Nigeria’s Segilola Gold Mine, Botswana’s Karowe Diamond Mine, and the Bon Ami Bauxite Project in Guinea, the collaboration between AFC and SMDF bodes well for the future of Nigeria’s mining sector.
