Unlocking Nigeria’s Mineral Wealth: AFC and SMDF Join Forces to Boost Mining Industry
The Africa Finance Corporation (AFC) and the Solid Minerals Development Fund of Nigeria (SMDF) have announced a strategic partnership aimed at revolutionising Nigeria’s mining sector and transitioning artisanal miners to an industrial level of operation. This collaboration seeks to address the lack of expertise and funding for early-stage mining projects, ultimately paving the way for these projects to thrive.
Nigeria boasts abundant mineral resources, providing a promising foundation for mining development. However, the scarcity of expertise and funding has hindered the progress of mining projects. In light of this, AFC and SMDF have united forces to bridge this gap and unleash the vast potential of Nigeria’s mineral resources. Through combined resources and expertise, they aim to not only provide investment opportunities but also a joint project development facility including technical support, guiding promising mining projects towards success.
A major outcome of this partnership is the AFC-SMDF Investment Manual, which will offer project sponsors a comprehensive understanding of the joint project development facility, its objectives, and the specific requirements for project consideration. This manual will also outline the appraisal checklist needed for project evaluation.
In order to simplify the project submission process, AFC and SMDF have established a dedicated portal for project sponsors, managed by global professional services firm PricewaterhouseCoopers (PWC) in collaboration with Nigerian consulting firms. This portal will facilitate the initial screening and evaluations of projects, ensuring a smooth submission process to AFC and SMDF for further assessment.
Moreover, AFC and SMDF have enlisted the expertise of Wood Mackenzie, a leading global research and consulting firm, to conduct a study on the feasibility of establishing a midstream processing plant in Nigeria. This study will focus on evaluating the potential for midstream and downstream mineral processing projects, thereby de-risking the investment landscape for potential investors.
Samaila Zubairu, President & CEO of AFC, emphasised the importance of this collaboration, highlighting the need for more investment to sustainably mine and develop commodities essential to the energy transition. He expressed excitement over partnering with SMDF, viewing this collaboration as a testament to their commitment to unlocking Nigeria’s mineral resources and fostering sustainable development and economic prosperity.
In acknowledgement of the partnership, Fatima Umaru Shinkafi, Executive Secretary and CEO of Solid Minerals Development Fund, conveyed gratitude for the support received and the alignment of these initiatives with the Ministry’s Transformation Agenda. She highlighted the significance of leveraging the mining sector to catalyse economic growth, competitiveness, and job creation, further emphasising the positive impact of these initiatives.
This partnership marks a significant leap towards harnessing Nigeria’s mineral wealth and solidifying the nation’s position in the global mining industry. Since 2014, the Africa Finance Corporation has invested over $900 million in mining projects across Africa, including pivotal projects in Nigeria.
Africa Finance Corporation (AFC) was established in 2007 and has since been a catalyst for private sector-led infrastructure investment across Africa. It has developed a track record as the partner of choice for investing and delivering high-quality infrastructure assets that provide essential services in core infrastructure sectors.
On the other hand, the Solid Minerals Development Fund is a sovereign Fund established by the Government of Nigeria to drive and catalyse private sector-led investments in Nigeria’s mining sector, with a focus on de-risking the sector and empowering economic development.
Ultimately, the AFC-SMDF partnership demonstrates a shared commitment to unlocking Nigeria’s abundant mineral resources, fostering economic growth, and positioning the country as a key player in the global mining industry. This collaboration has the potential to accelerate the growth and development of Nigeria’s mining sector, opening up new opportunities for investors and propelling the nation towards sustainable economic prosperity.
