The European Union (EU) has shown significant interest in expanding trade and investment in Nigeria’s solid minerals sector, which is viewed as a key opportunity for economic diversification. During a recent visit to Nigeria’s Minister of Solid Minerals Development, Dele Alake, EU Ambassador to Nigeria and ECOWAS, Gautier Mignot, praised Nigeria’s ongoing efforts to reposition its mining industry. The EU delegation seeks to explore potential collaboration and investment opportunities within Nigeria’s solid minerals sector, focusing on critical minerals that are in demand for the global shift towards green energy.
Minister Dele Alake highlighted Nigeria’s wealth of essential minerals such as lithium, cobalt, and copper, which are integral to industries like solar power, electric vehicles, and battery production. He emphasized that Nigeria’s current exploration efforts could reveal over $700 billion worth of mineral deposits, presenting a significant investment opportunity. Alake urged EU investors to capitalize on these resources, while also stressing the importance of local value addition in mining projects to stimulate job creation and economic growth.
To attract EU investment, Alake outlined several incentives, including tax waivers for mining equipment, policies that allow full repatriation of profits, and enhanced security measures to safeguard mining activities. He emphasized that prospective investors must have concrete plans for local value addition, ensuring that mining projects contribute to Nigeria’s economy beyond extraction. The government’s focus on developing sustainable mining practices, including traceability systems for minerals, was also highlighted.
The Nigerian government is putting in place mechanisms to track the movement of minerals, both raw and processed, to prevent illegal mining and smuggling. This includes pre-shipment inspections and satellite monitoring of mining activities. Ambassador Mignot assured the Minister of the EU’s commitment to supporting Nigeria’s mining reforms and fostering mutually beneficial trade partnerships between European companies and Nigerian stakeholders.
Source: Business day