Nigeria Takes Lead in Reviving Africa’s Mining Sector
Nigeria, in conjunction with Uganda and several other African nations, has taken the lead in revitalising the mining sector in Africa. This move is part of a concentrated effort to advocate for local value addition and maximum beneficiation from Africa’s abundant mineral resources.
During the 30th edition of the “Investing in Mining Indaba” in Cape Town, South Africa, Dr. Dele Alake, the Minister of Solid Minerals Development for Nigeria, was unanimously elected as the inaugural chairman of the African Minerals Strategy Group (AMSG). The AMSG aims to create a united front in promoting Africa’s interests in the global mining industry.
In a recent address, Minister Alake underscored the necessity for a unified stance on value addition in the mining sector, declaring that the era of exporting solid minerals without adding value to the local economy is over. He also emphasised the importance of establishing a value chain that encompasses exploration, mining, processing, and transportation, as well as delivery to the end-consumer.
Furthermore, Minister Alake highlighted Nigeria’s potential as an attractive prospect for investors in the Lithium value chain, citing the abundance of the critical metal in several areas. He elucidated that the country’s Lithium resources could lead to lower production costs in comparison to other nations.
Moreover, Minister Alake urged African nations to consider forming Public Private Partnerships (PPP) with multilateral financial institutions to unlock funding for the development of the mining sector. He also recommended that African countries consider Nigeria’s Solid Minerals Development Fund model as a source of internal funding.
In Nigeria, President Bola Tinubu’s administration has implemented reforms in the mining sector, including the establishment of a specialised security outfit to protect natural resources. Additionally, plans are underway to create a Special Purpose Vehicle (SPV) known as the Nigerian Mining Corporation to provide an efficient governance structure for the sector.
The National Assembly has also commenced the process of amending the Nigerian Minerals and Mining Act 2007 in collaboration with the Ministry of Solid Minerals Development to support the proposed mining corporation and other reforms with relevant statutes.
With regards to mining licenses, Minister Alake hinted at the possibility of revoking more licenses due to non-payment of annual service fees, as part of efforts to clear the path for bona fide investors who comply with regulations.
In conclusion, Nigeria is actively contributing to the renaissance of Africa’s mining sector by creating an enabling environment to attract investments and prioritising local value addition. The country’s leadership role in the AMSG further solidifies its commitment to developing the mining sector for the benefit of Africa as a whole.
Author: Tomori Special Assistant on Media to the Minister of Solid Minerals Development
