Nigeria Taking the Lead in the Resurgence of Africa’s Mining Sector
The 30th iteration of the “Investing in Mining Indaba” held in Cape Town, South Africa, served as a platform for African nations to convene and deliberate on the future of the mining industry. Nigeria and Uganda have emerged as leaders in fostering a coalition with more than a dozen other African countries, with the objective of prioritizing local value addition and maximizing benefits from the extensive mineral resources on the continent.
The establishment of the African Minerals Strategy Group (AMSG) marks a momentous stride, with Nigeria’s Minister of Solid Minerals Development, Dr. Dele Alake, assuming the inaugural role of chairman. Alake underscored the significance of value addition as a fundamental prerequisite for investment in the mining sector, as well as the necessity for infrastructure to support the complete value chain, from exploration to the delivery of the final product to consumers.
Nigeria is particularly focused on attracting investors in the Lithium value chain, citing the country’s experience of a “Lithium boom” owing to the prevalence of the critical metal in several regions. Furthermore, the Minister advocated for Public Private Partnerships (PPP) in conjunction with multilateral financial institutions to unlock funding for the mining sector.
On the domestic front, President Bola Tinubu has taken the lead in spearheading reforms in the mining sector through the establishment of an inter-ministerial committee tasked with devising a blueprint for securing natural resources. The committee is also actively involved in the establishment of a specialized security outfit to safeguard solid minerals, forest flora and fauna, and the marine economy.
Efforts are in progress to create a Special Purpose Vehicle (SPV) named the Nigerian Mining Corporation, which will operate under private sector management and seek to mitigate government intervention. The National Assembly is also contributing to this process by initiating amendments to the 2007 Nigerian Minerals and Mining Act to support these reforms.
In an endeavor to rectify the conditions in the mining environment, recent revocations of mining licenses have been carried out due to default in the payment of annual service fees. This measure aims to open up opportunities for legitimate investors and ensure adherence to regulations.
Collectively, Nigeria is at the forefront of the resurgence of Africa’s mining sector, with a focal point on local value addition and the creation of a conducive environment to attract both local and foreign investments. This novel direction signals a positive shift for Africa to maximize its abundant natural resources.
