Nigeria’s Plan to Establish Solid Minerals Corporation to Attract Investments
Nigeria has announced plans to establish the Nigerian Solid Minerals Corporation, a government-owned organization aimed at attracting investments in the extraction of various minerals, including gold, coal, iron-ore, bitumen, lead, limestone and baryte. Minister of Solid Minerals Dele Alake has stated that the proposed corporation seeks to form partnership investment agreements with major multinational companies worldwide to capitalize on the country’s investment-friendly environment and attract significant foreign direct investment for the mining sector.
The Nigerian government is looking to enhance the role of mining in its economy, diversifying away from its heavy reliance on oil exploration. The creation of the Nigerian Solid Minerals Corporation is in line with this objective. Alake did not provide a specific timeline for the establishment of the new company, but indicated that existing enterprises such as the National Iron-Ore Company and the Bitumen Concessioning Programme will be assessed to align with the corporation. Additionally, a mines police force will be operational from October to combat illegal mining activities.
President Bola Tinubu has introduced substantial economic reforms to improve Nigeria’s investment climate and attract foreign investors to the country. Given the challenging economic landscape characterized by significant debt, foreign exchange and fuel shortages, currency weakness, high inflation, limited power supply, and declining oil production, Tinubu’s administration has prioritized investment promotion as an alternative to borrowing in order to create employment opportunities. Tinubu is also scheduled to attend the upcoming G20 summit to advocate for foreign investment in Nigeria and mobilize global capital for infrastructure development.
The newly proposed corporation intends to collaborate with local financial institutions, historically hesitant to engage in the mining sector due to extended project gestation periods, to facilitate investment. This action underscores the government’s commitment to creating a conducive environment for investment in the mining industry.
The establishment of the Nigerian Solid Minerals Corporation marks a significant step in attracting investments and revitalizing the country’s mineral extraction sector. As Nigeria endeavors to diversify its economy and reduce its reliance on oil, the formation of this state-backed entity is positioned to play a crucial role in driving foreign direct investment and promoting sustainable growth in the mining industry. The article was reported by Camillus Eboh and written by Chijioke Ohuocha, with editing by Susan Fenton.
(Source: Reuters)
