Nigeria’s Emerging Role in Global Supply of Critical Minerals – A Promising Future in the Solid Mineral Sector
Nigeria has made a noteworthy stride in asserting its readiness to contribute to the global demand for critical minerals, as declared by the Minister of Solid Minerals Development, Dele Alake. During a special session at the United Nations General Assembly in New York, Mr Alake discussed Nigeria’s potential to become a key player in the energy sector and the global supply chain of critical minerals.
At an event organized by the Corporate Council of Africa, Mr Alake highlighted Nigeria’s extensive mineral resources, valued at over $700 billion with the potential for further discovery and exploration. Despite lagging behind other African countries in the mining sector, Nigeria’s abundant mineral deposits position the country as a top 10 player in the energy sector, attracting the attention of global stakeholders.
Under the theme “From critical minerals to energy transition: Africa in the driver’s seat,” Mr Alake emphasised Africa’s pivotal role in driving the global energy transition through the supply of critical minerals. Particularly, Nigeria’s prominent position in the global energy discourse, especially concerning oil and gas exportation, signifies its potential to become a leading supplier of critical minerals essential for the transition to renewable energy sources.
Mr Alake discussed the increasing reliance on critical minerals in the global energy industry, especially in the context of electric vehicles, renewable energy technologies, and energy storage solutions. He emphasised Nigeria’s potential as a significant supplier of critical minerals in the emerging energy landscape, presenting the country with various opportunities for economic growth and international partnerships.
Furthermore, Mr Alake highlighted specific mineral resources available in Nigeria, such as lithium, graphite, rare earth elements, platinum group minerals, nickel, and zinc, distributed across different states. He outlined the government’s priority to develop the entire value chain within the country, from mineral extraction to the production of end-use products, reflecting the administration’s commitment to advancing the solid mineral sector.
In a bid to attract foreign investment, Mr Alake presented various incentives available for potential investors, including capital allowances, tax holidays, and flexible foreign currency regulations. He stressed the government’s willingness to engage in joint ventures with major international mining companies to explore and exploit Nigeria’s vast mineral potential.
The Minister of Solid Minerals and Mines from Namibia, the Ambassadors of Tanzania and Zambia to the United States, and representatives from the US Treasury Department, International Development Finance Corporation, and prominent mining companies attended the Roundtable session, indicating the growing interest and support for Nigeria’s solid mineral sector.
In conclusion, Mr Alake expressed Nigeria’s readiness to embrace its role as a significant player in the global supply chain of critical minerals, with a focus on sustainable development and responsible governance. The government’s commitment to promoting the solid mineral sector as a key contributor to the national GDP reflects the country’s determination to position itself as a leading mining destination on the continent.
