Nigerian Govt Woos Foreign Mining Investors With Lower Production Cost

29 November 2023
press release

The minister quoted recent reports by audit firm KPMG which reported that mining's contribution to Nigeria's GDP rose from 0.3 per cent to 0.85 per cent last year, indicating 0.63 per cent year-on-year growth.

Cutting red tape which slows business transactions and improving the security of mining operations are among fresh commitments unfolded by Nigeria's Minister of Solid Minerals Development, Oladele Alake at the Mines & Money Conference which opened in London, United Kingdom on Tuesday.

Addressing global stakeholders in the mining industry, Mr Alake, in the 15-minute speech pitched for more investment in Nigeria, listed unique advantages such as lower production cost due to surface mining and billions of dollars in untapped minerals.

The minister quoted recent reports by audit firm KPMG which reported that mining's contribution to Nigeria's GDP rose from 0.3 per cent to 0.85 per cent last year, indicating 0.63 per cent year-on-year growth.

"The country's geological bounty encompasses over 44 distinct mineral types, found in exploitable quantities across more than 500 locations. Recently, recognising the evolving global landscape and in response to emerging trends, Lithium has been included as a crucial strategic mineral of global consequence," he said.

Mr Alake said the administration of President Bola Tinubu had embarked on reforms to boost investment by streamlining procedures and reducing hurdles to attract foreign investors.

Showcasing recent progress in creating conditions for solid minerals development, Mr Alake highlighted fresh data revealed by the Airborne Geophysical Survey, a memorandum of understanding with German firm Geoscan to gather more data on solid minerals across the country and access to finance through a new funding facility launched by the Africa Finance Corporation and the Solid Minerals Development Fund.

The minister reminded the global mining community of the Nigerian government's policies on how mining operations must benefit the communities and lead to processing instead of wholesale export of raw minerals.

"Nigeria is currently emphasising Solid Minerals Beneficiation and Value-Addition as a panacea for quick and sustainable growth of the Mining Industry...By adding value to our raw materials, we not only create higher value products but also generate employment opportunities for our teeming youth and increase the sector's overall profitability and contribution to the nation's GDP," he said.

Mr Alake urged investors to support the socio-economic development of the communities where they mine to make mining mutually beneficial, citing the recent launch of the revised guidelines for the Community Development Agreement which provides for social amenities, educational support, health and safety environmental facilities.

Kehinde BAMIGBETAN

Special Adviser to the Honourable Minister

AllAfrica publishes around 500 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.