Nigeria Takes the Lead in Revolutionising Africa’s Mining Sector
The 30th edition of the “Investing in Mining Indaba” recently convened in Cape Town, South Africa. This conference provided an opportunity for African nations to convene and deliberate on the continent’s interests in the global mining industry. Nigeria and Uganda are among the more than a dozen African countries that have joined forces on this issue.
At the event, Dr. Dele Alake, Nigeria’s Minister of Solid Minerals Development, was unanimously elected as the inaugural chairman of the African Minerals Strategy Group (AMSG). The AMSG is a coalition aimed at ensuring that African nations derive maximum benefit from the continent’s mineral resources. Minister Alake stressed the importance of value addition as a prerequisite for investment in the mining sector. This requires countries seeking access to African minerals to adhere to the same regulations and laws.
Central to this strategy is the establishment of value chains from exploration to delivery to the end consumer. Minister Alake underscored Nigeria’s potential as an attractive investment destination in the Lithium value chain. He argued that Nigeria’s abundance of Lithium would result in lower production costs for extraction compared to other countries.
The Minister also underscored the significance of Public Private Partnerships (PPP) and referenced Nigeria’s establishment of the Solid Minerals Development Fund (SMDF) as a means to stimulate local investment in the mining sector. He urged other African nations to consider similar models.
In Nigeria, President Bola Tinubu has initiated reforms in the mining sector. An inter-ministerial committee chaired by Dr. Alake has been tasked with developing a blueprint for securing natural resources. There are also plans to establish a Special Purpose Vehicle (SPV) called the Nigerian Mining Corporation, which aims to be driven by the private sector and efficient regardless of administration.
The National Assembly is currently amending the 2007 Nigerian Minerals and Mining Act to support these reforms. Additionally, there are plans to revoke more mining licenses to create opportunities for genuine investors willing to comply with regulations.
In summary, Nigeria is playing a crucial role in reforming Africa’s mining sector. Minister Alake affirmed this new direction during Cape Town’s Mining Indaba, emphasizing the focus on local value addition to ensure that Africa maximizes the benefits from its natural resources.
_*Segun Tomori* is the Special Assistant on Media to the Honourable Minister of Solid Minerals Development._
