Minister of Solid Minerals Development, Dr. Dele Alake, has addressed global stakeholders at the “Mines and Money Conference” in the United Kingdom, assuring foreign investors interested in Nigeria’s mining sector of a conducive business environment and low production costs.
Alake highlighted the unique advantages of investing in Nigeria, including lower production costs due to surface mining and the presence of untapped mineral resources estimated in the billions of dollars.
Recent reports by audit firm KPMG indicated that the contribution of mining to Nigeria’s Gross Domestic Product (GDP) rose from 0.3 per cent to 0.85 per cent in 2022, reflecting a year-on-year growth of 0.63 per cent .
Alake emphasized the vast geological resources in Nigeria, with over 44 distinct mineral types available across more than 500 locations. Notably, lithium has been recognized as a crucial strategic mineral of global consequence.
The minister underscored the government’s commitment to reforms aimed at boosting investment by simplifying procedures and reducing hurdles to attract foreign investors. He highlighted ongoing initiatives such as the Airborne Geophysical Survey and a Memorandum of Understanding (MoU) with German firm Geoscan to gather more data on solid minerals across the country.
Alake also pointed out the availability of finance through a new funding facility introduced by the Africa Finance Corporation and the Solid Minerals Development Fund as incentives for investors.
He reminded the global mining community of the government’s policies, emphasizing that mining operations should benefit communities and promote the processing of minerals instead of wholesale export of raw materials.
Nigeria is focusing on solid minerals beneficiation and value addition as a means of fostering quick and sustainable growth in the mining industry.
Alake stressed that adding value to raw materials creates higher-value products, generates employment opportunities, and increases the sector’s overall profitability and contribution to the nation’s GDP.
He urged investors to support the socio-economic development of mining communities, referencing the recent inauguration of revised guidelines for Community Development Agreements that include provisions for social amenities, educational support, health, safety, and environmental facilities.
