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.