The Nigerian Government’s Push to Attract Foreign Investors to the Mining Sector
The Honourable Minister of Solid Minerals Development, Oladele Alake, recently delivered a speech to a global audience at the Mines & Money Conference in London, United Kingdom. During his address, he unveiled new commitments designed to attract foreign investors to Nigeria’s mining industry.
Mr Alake emphasized the advantages of investing in Nigeria, such as lower production costs due to surface mining and the presence of significant untapped mineral reserves worth billions of dollars. He referenced a report by audit firm KPMG, which indicated a year-on-year growth of 0.63 per cent in mining’s contribution to Nigeria’s GDP, rising from 0.3 per cent to 0.85 per cent.
The Minister also highlighted Nigeria’s abundant geological resources, with over 44 distinct mineral types available in exploitable quantities across more than 500 locations. He also mentioned the inclusion of lithium as a strategically important mineral in response to global trends.
To encourage investment, the administration of President Bola Tinubu has implemented reforms to simplify procedures and reduce obstacles for foreign investors. Mr Alake referred to recent progress in solid minerals development, including the Airborne Geophysical Survey, a memorandum of understanding with German firm Geoscan, and access to finance through a new funding facility launched by the Africa Finance Corporation and the Solid Minerals Development Fund.
Additionally, the Minister reiterated the government’s commitment to ensuring that mining operations benefit local communities and lead to the processing, rather than wholesale export, of raw minerals. He emphasized the importance of solid minerals beneficiation and value addition to promote sustainable growth, create employment opportunities, and increase the sector’s profitability and contribution to the nation’s GDP.
Mr Alake urged investors to support the socio-economic development of the communities in which they operate, referencing the revised guidelines for the Community Development Agreement, which provides for social amenities, educational support, health and safety, and environmental facilities.
In conclusion, the Minister’s address at the Mines & Money Conference highlighted Nigeria’s efforts to attract foreign investment in the mining sector, underscoring the country’s commitment to creating a conducive environment for mining operations while ensuring that the industry contributes to the overall socio-economic development of Nigeria.
Overall, Nigeria’s push to attract foreign investors to the mining sector is a testament to the country’s dedication to fostering economic growth and sustainable development.
By Kehinde BAMIGBETAN, Special Adviser to the Honourable Minister.
