Nigeria’s Solid Minerals Development and Africa’s Mining Sector Transformation
The 30th edition of the “Investing in Mining Indaba” has heralded significant progress for the African mining sector, particularly for countries such as Nigeria and Uganda. Dr. Dele Alake, the Minister of Solid Minerals Development in Nigeria, has emerged as a prominent figure in leading the effort towards a renewed emphasis on local value addition and maximum beneficiation from the continent’s vast mineral resources. This initiative is part of a broader goal to advocate for Africa’s interests in the global mining industry.
At the core of this transformation is the African Minerals Strategy Group (AMSG), which was established following the coalition of over a dozen African countries led by Nigeria and Uganda. During the recent mining conference in South Africa, Dr. Dele Alake was elected as the inaugural chairman of AMSG. In this capacity, he has stressed the importance of a unified voice on value addition as a pivotal factor in attracting investment in the mining sector. He has emphasized that this unity will demonstrate a sincere intention and garner international attention for Africa.
Dr. Alake has further emphasized the significance of creating a value chain that encompasses all aspects of the mining process, from exploration to delivery to the end consumer. He has underscored the need for infrastructure development, particularly in collaboration with consumer nations that require raw materials. Nigeria’s abundant reserves of critical minerals, including lithium, position the country as an attractive destination for potential investors in the lithium value chain.
On the domestic front, President Bola Tinubu’s reforms in the mining sector are gaining momentum with the establishment of an inter-ministerial committee to secure natural resources. Additionally, plans are underway to establish a Special Purpose Vehicle (SPV) in the form of the Nigerian Mining Corporation, which aims to create an efficient governance structure for the mining sector. The cooperation of the National Assembly in amending the 2007 Nigerian Minerals and Mining Act further underscores the commitment to solidifying these reforms through appropriate legislation.
Dr. Alake has also indicated the imminent revocation of more mining licenses to ensure compliance with regulations and free up space for genuine investors. These measures, along with the establishment of the Solid Minerals Development Fund (SMDF) and partnerships with multilateral financial institutions, represent Nigeria’s proactive approach to developing the mining sector.
In conclusion, Nigeria’s leadership in the AMSG and the reforms spearheaded by Dr. Dele Alake underscore the country’s pivotal role in driving the resurgence of Africa’s mining sector. The focus on local value addition and creating an enabling environment for investments, both local and foreign, signals a new era for Africa to maximize its abundant natural resources.
Authored by Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development.
