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

The post Nigeria Seeks $500 Million Investment in Mining Sector During South Africa Roadshow first appeared on Nigerian Mining News.

Nigeria is actively attracting global investment to transform its mining sector, which is estimated to have a potential worth $700 billion. With President Bola Tinubu’s reforms underway, the country recently held a four-day investment roadshow in South Africa targeting $500 million in foreign funding for its solid minerals sector. This initiative attracted significant interest from investors keen on Nigeria’s mineral reserves, including gold, tantalum, limestone, and lithium. Diplomatic sources revealed that international governments are questioning why Chinese firms dominate Nigeria’s mining potential, highlighting the recent effective reforms in the sector. These reforms, guided by Minister Dele Alake, are intended to diversify the economy away from oil dependency. Alake urged international companies to seize opportunities as the climate for investing in Nigeria’s mining industry improves. The World Bank has also purportedly supported these reforms, aligning with its recommendations aimed at boosting Nigeria’s economic stability and diversification strategy. Experts predict that the mining sector could contribute an additional $25 billion to Nigeria’s GDP in the next decade, alongside creating over three million jobs. Efforts are also focused on modernising industry practices, as seen with the launch of the Electronic Mining Cadastral System, streamlining the licensing process for mining operations. The Nigerian government envisions collaboration with global mining leaders like Glencore and Rio Tinto to fully leverage its mineral wealth for national development.

Nigeria is focusing on revamping its mining sector, recognising the potential economic advantages from its rich mineral resources. Recent reforms aim to attract foreign investments while reducing reliance on oil revenues, making the country more appealing to international investors. Engagement with global financial institutions, such as the World Bank, further solidifies Nigeria’s commitment to sustainable economic strategies and diversification through its mining sector.

In summary, Nigeria’s strategic reforms in the mining sector present significant opportunities for foreign investors, aiming to unlock a $700 billion potential. The government’s focus on diversification and economic resilience, supported by initiatives like the Electronic Mining Cadastral System, is paving the way for the mining sector to become a critical economic driver over the coming years.

Original Source: punchng.com

The post Nigeria’s Mining Sector: A $700 Billion Opportunity for Global Investors first appeared on Nigerian Mining News.