Nigeria is seeking $500 million in initial foreign investments in its solid minerals sector through a four-day investment roadshow in South Africa that began on November 6. Organised by the Nigeria High Commission and Rosebank Capital, the event focuses on utilising South Africa’s mining expertise to boost Nigeria’s capacity in the $700 billion sector which includes resources like gold, tantalite, and lithium. Despite the potential, mining exploration in Nigeria is underfunded, with projects facing hurdles such as financing challenges and a lack of expertise.

Niyi Oloruntoba, CEO of Rosebank Capital, noted, “We are targeting at least $500 million in initial investments and that is coming on really well,” indicating discussions for a $200 million project. Yemi Kale, chief economist of Afrexim bank, emphasised that the sector could diversify Nigeria’s economy and contribute $25 billion to its GDP over the next decade, generating up to three million jobs.

Despite challenges, including a heavy reliance on crude oil, the Nigerian government is committed to diversifying its revenue streams. Mary Ogbe, permanent secretary of the solid minerals sector, stated initiatives like tax waivers and guaranteed profit repatriation are being implemented to attract investors. Additionally, small-scale mining licences are being granted to formalise artisan miners in cooperatives.

Nere Emiko, CEO of Kian Smith, reassured potential investors about the sector’s opportunities, revealing promising pathways in the 44 different minerals available in Nigeria. Her insights aimed to dispel concerns and highlight the positive outlook for investing in the nation’s mining industry.

Nigeria is rich in mineral resources, with significant potential for growth in its mining sector, estimated at $700 billion. However, underfunding and other challenges have hindered exploration and exploitation of these resources. The recent investment drive in South Africa is a strategic effort to attract foreign investment and expertise, which are crucial for the sector’s development and diversification of the Nigerian economy away from oil dependence.

The Nigerian government is intensifying efforts to secure $500 million in initial investments to harness its vast solid mineral resources. By addressing financial and technical barriers and offering incentives to investors, Nigeria aims to revitalise its mining sector, create jobs, and increase its GDP contribution. Through partnerships and initiatives targeting sustainable development, the country is working towards a more diversified economic future.

Original Source: businessday.ng

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In Plateau State, illicit tin mining thrives as individuals like Emma Kago profit without legal oversight. Kago’s operation employs seven workers and functions without a mining licence, claiming regulatory authorities chiefly target foreign miners. Artisanal miners extract tin, which is then sold through numerous informal “tin sheds” that avoid tracking their sources, circumventing Nigeria’s mining regulations, and depriving the government of revenue. Despite a surge in tin production, which now feeds into renewable energy demands, Nigeria’s solid mineral sector contributes marginally to the GDP, highlighting an endemic issue of illegal mining and inadequate regulation. Experts stress that while the miners earn, the bulk of the profits predominantly benefits larger traders and exporters, leaving artisanal miners undercompensated. With billions lost annually to illegal activities, systemic reform is necessary for any substantial economic benefit from these resources.

Tin mining in Plateau State, Nigeria, has a storied history dating back to colonial times, once contributing significantly to global supply. Despite a rise in demand due to the transition to renewable energy, illegal mining dominates due to a lack of stringent regulations and oversight. This has created a parallel market where only a fraction of the profits benefits the state, with most resources siphoned away by unregulated traders. The government attempts to address this with initiatives and regulations, but their implementation has been largely ineffective, leading to significant revenue losses.

The ongoing illicit tin mining in Plateau State illustrates a deep-rooted issue of unregulated practices undermining national revenue. While there is high demand globally—and profitability for some local miners—most financial gains concentrate in the hands of larger traders and exporters. For Nigeria to effectively harness its mineral wealth, there need to be stronger enforcement of regulations and a reform in how mineral resources are managed in the region.

Original Source: www.premiumtimesng.com

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