Attracting Foreign Investors: Nigeria’s Push for Mining Sector Investment
Nigeria is currently focused on positioning itself as an appealing prospect for foreign investors within the mining sector, and Dr Dele Alake, the Minister of Solid Minerals Development, is at the forefront of this endeavour. During a virtual address delivered at the Nigeria-Australia Investment Roundtable, Dr Alake underscored the various incentives and policies that have been implemented to facilitate a conducive environment for conducting business within the mining sector.
A pivotal initiative highlighted by the Minister was the establishment of an elite para-military force comprising 2,220 members, known as the “Mining Marshals.” This force, which includes a 60-person rapid response team in each of Nigeria’s 36 states and the Federal Capital Territory, is dedicated to combatting illegal mining and addressing security concerns within mining areas.
During his address, Dr Alake stressed that the concept of illegal mining encompasses not only unlicensed operations, but also encompasses licensed miners operating with invalid licenses, operating outside the confines of their specified coordinates, or extracting minerals not sanctioned within their licenses. The actions taken by the Mining Marshals have already proven to be effective in deterring illegal mining, providing relief to legitimate miners, and cracking down on illicit activities within mining areas.
Furthermore, Dr Alake took the opportunity to assure potential Australian investors that the formation of the private sector-led Nigerian Solid Minerals Corporation is progressing as planned. This corporation is positioned to engage in joint ventures with investors for essential minerals such as lithium, gold, baryte lead, and iron ore, among others.
In addition to these initiatives, Dr Alake discussed efforts to enhance the regulatory frameworks within the mining sector. Notably, over 1,600 titles have been revoked due to default in payment of annual service fees, and scrutiny has been extended to other categories of defaulters in order to address issues such as speculation, license racketeering, and non-compliance with site requirements.
The Minister urged Australian investors to consider Nigeria as their preferred investment destination, citing the government’s positive investment-friendly policies and ongoing efforts to facilitate rapid transformation within the mining sector. He also emphasized the tax waivers and import duty exemptions available for heavy mining equipment, as well as a favourable fund and capital repatriation policy to safeguard investors’ funds.
In a separate engagement, Dr Alake, in his capacity as Chairman of the African Minerals Strategy Group (AMSG), addressed the significance of promoting value addition within the African mining industry. He emphasized the importance of discouraging the export of raw, unprocessed minerals and focusing on adding value within the continent.
Dr Alake’s election as Chairman of the AMSG during the Future Minerals Forum (FMF) in Riyadh, Saudi Arabia, earlier in the year, has positioned him to urge African countries to emulate Nigeria’s example and implement policies that promote value addition for the benefit of citizens and the overall economic development of the continent.
The Minister’s appeal for African countries to advocate for value addition in the mining sector underscores the continent’s commitment to fostering sustainable growth and development. This unified approach, he believes, will ultimately attract investors who are aligned with the goal of mutual benefit for Africa.
In summary, Nigeria’s concentrated efforts to demonstrate the potential of its mining sector to foreign investors, along with Dr Dele Alake’s leadership and advocacy for value addition in the African mining industry, are indicative of steps taken to enhance the continent’s competitiveness and economic growth. As the country continues to make progress in this area, it is poised to become a prime destination for foreign investment within the mining sector.
