Revitalizing Africa’s Mining Sector: Nigeria at the Forefront
The 30th edition of the “Investing in Mining Indaba” occurred in Cape Town, South Africa, serving as a platform for African nations to collaborate and champion the interests of the continent within the global mining industry. A significant highlight of the event was the coalition led by Nigeria and Uganda, which saw over a dozen African countries uniting to advocate for local value addition from their abundant mineral resources.
Dr. Dele Alake, Nigeria’s Minister of Solid Minerals Development, was elected as the pioneering chairman of the African Minerals Strategy Group (AMSG). He emphasized the necessity to cease wasting solid minerals without adding value to Africa’s economy. Dr. Alake also stressed the importance of creating a value chain from exploration to mining, processing, inventory management, transportation, and ultimately, delivery to the end-consumer. His plea for a unified approach towards value addition and investment in the mining sector reflects Nigeria’s commitment to driving the resurgence of Africa’s mining industry.
Furthermore, Dr. Alake highlighted Nigeria’s position as an attractive destination for potential investors in the lithium value chain, citing the country’s ‘Lithium boom’ and the abundance of the critical metal in several localities. He also underlined the role of public-private partnerships and multilateral financial institutions in financing the development of the mining sector, pointing to the establishment of the Solid Minerals Development Fund (SMDF) as an example of Nigeria’s proactive approach.
The Nigerian government, under the leadership of President Bola Tinubu, has been proactive in implementing reforms in the mining sector. An inter-ministerial committee has been established to develop a blueprint for securing natural resources, including solid minerals, forest flora and fauna, and the marine economy. Additionally, plans are underway to establish the Nigerian Mining Corporation, a private sector-driven entity aimed at ensuring efficiency and stability in the governance of the mining sector.
In an effort to streamline the mining sector, the National Assembly is working on amending the 2007 Nigerian Minerals and Mining Act to support the proposed mining corporations and other reforms. Dr. Alake has also announced the revocation of mining licenses due to default in annual service fees, indicating a commitment to enforcing stricter regulations to create room for genuine investors who comply with regulations.
Dr. Alake further emphasized Nigeria’s pivotal role in Africa’s mining sector renaissance, highlighting the government’s efforts to sanitize the mining environment and create an enabling environment to attract both local and foreign investments. As the chair of the AMSG, Dr. Alake expressed the commitment to prioritize local value addition, ensuring that Africa maximizes the benefits from its abundant natural resources.
In concluding, Nigeria’s leadership and advocacy for a unified approach towards promoting local value addition and attracting investment in the mining sector have positioned the country at the forefront of Africa’s mining sector resurgence. Dr. Dele Alake’s vision and the proactive measures taken by the Nigerian government reflect a strong commitment to revitalizing the mining industry, not only in Nigeria but across the African continent.
