By Obiabin Onukwugha
Nigeria’s mining sector has attracted $2.6 billion, an equivalent of N1.9trillion in foreign direct investment (FDI) in the last two and a half years.
Minister of Solid Minerals Development Dele Alake, revealed this while speaking at the on going Powering Africa Summit in Washington, D.C., United States. He said the ministry has sanitised the mining industry to make the sector conducive for investments.
“We have successfully de-risked and sanitized the mining environment, making it conducive to Foreign Direct Investment (FDI). Within the last two and a half years, we have attracted over $2.6 billion in FDI into the sector,” he said.
Alake, who was speaking during a panel session themed ‘Critical Minerals in Africa: Meeting Global Demand,’ said sustainable partnerships with Africa remain the fastest route to meeting rising global demand for critical minerals.
A statement by the Special Assistant on Media to the minister, Segun Tomori, said the minister further highlighted the impact of reforms under the administration of President Bola Ahmed Tinubu.
Alake mentioned that stakeholders are supported by investment incentives, including tax waivers on imported mining equipment and full repatriation of profits after due payment of royalties and taxes.
He also said Nigeria is open to genuine investors, while emphasising on the need for the industry stakeholders to adhere to local laws and regulations.
According to him, “strengthened governance structures, improved regulatory frameworks, digitisation of licensing processes, and enhanced ease of doing business have repositioned Nigeria’s mining sector as a key driver of economic diversification.”
Alake further notes that the reforms introduced in the last two and half years now guarantee mineral title holders secure tenure, thereby providing the long-term stability required for investment decisions.
He also said the government is expanding the generation of scientific and internationally certified geological data to support informed decision-making by both local and international investors.
The minister charged the US and African nations to prioritise the establishment of regional energy hubs “as a strategic pathway to accelerate cross-border mining industrialisation and strengthen the supply chain of critical minerals essential for the global energy transition.”
The minister called for the development of regional industrial corridors akin to the Lobito Corridor, such as the Lagos–Abidjan corridor, spanning Nigeria, Benin, Togo, Ghana, and Côte d’Ivoire, as well as the Walvis Bay Corridor linking Southern and Central Africa to global markets, adding that this could unlock vast mineral potential across the continent.
“The development of nuclear power in one West African country, for instance, can service an entire corridor. With that in place, local beneficiation, technology transfer, manufacturing, and cross-border industrialization will naturally follow
“If three to five such corridors are developed in Africa, we would significantly advance industrialization across the continent, creating a win-win outcome for both Africa and the West,” he said.
Speaking about the security in the industry, Alake acknowledged challenges within the sector but noted significant progress through the establishment of mining marshals.
