Nigeria and Saudi Arabia Pledge to Boost Mining Sector Development
Nigeria and the Kingdom of Saudi Arabia have announced their collaboration on the development of solid minerals in Nigeria. The decision was made following a meeting between the two countries, as announced by Segun Tomori, media aide of Dele Alake, the minister of solid minerals development, in a statement on Wednesday.
The bilateral meeting took place during the Future Minerals Forum (FMF) in Riyadh, between Alake and Bandar AlKhorayef, his Saudi Arabian counterpart. During the meeting, Alake emphasized the importance of forming partnerships for global energy transition, highlighting Nigeria’s abundance of critical minerals.
“We need a lot of investments in exploration, exploitation, extraction, processing, local value addition…We must look at regions outside of Africa to collaborate, further consolidate, and enhance our capacity in exploring and exploiting the natural resources that we have,” he said.
The minister also expressed Nigeria’s openness to investments in the mining sector, advocating for local value addition and the establishment of factories in Nigeria, leading to employment and a multiplier effect on the economy.
Alake also highlighted President Tinubu’s policy on repatriation of profits by foreign investors, tax waivers for mining equipment, and a rejigged security architecture to encourage investment in Nigeria’s mining sector.
In response, AlKhorayef shared Nigeria’s stance on the principles of economic diversification, with a focus on the mining industry. He expressed Saudi Arabia’s support for local value addition and willingness to cooperate with Nigeria.
Both countries have now planned to establish a joint technical committee to collaborate on partnership and develop the mining sector, focusing on areas of comparative advantage.
This collaboration is a significant step towards harnessing the potential of Nigeria’s abundant mineral resources and further diversifying its economy. It also reflects the shared commitment of Nigeria and Saudi Arabia to fostering economic development through international cooperation.
Nigeria is aiming to attract foreign investment in its mining sector with policies that support the establishment of local processing facilities and provide incentives for potential investors. This move is expected to contribute to job creation and drive economic growth in the country.
The establishment of a joint technical committee between Nigeria and Saudi Arabia demonstrates a concrete commitment to the partnership and the development of the mining sector. This collaboration is expected to lead to mutually beneficial outcomes for both countries.
In conclusion, the solidification of partnerships and international cooperation is crucial for the sustainable development of Nigeria’s mining sector. By working together with Saudi Arabia, Nigeria aims to leverage its mineral wealth for economic and infrastructural development, contributing to the overall growth and prosperity of the nation.
