Nigeria inks MoU to boost mining sector
The government of Nigeria has entered into a memorandum of understanding to support and promote the country’s mining sector.
Through the Solid Minerals Development Fund of Nigeria (SMDF), the govt sealed the MoU with the Africa Finance Corporation (AFC) and Xcalibur Multiphysics. The main goal is to de-risk Nigeria’s mining sector. The agreement intends to provide critical funding support to competent investors interested in the country’s high-grade minerals. It addresses the shortage of expertise and financing for early-stage mining projects, with the aim of advancing these projects to full-scale operations.
Nigeria’s mining potential
The Minister of Solid Minerals Development, Dele Alake, emphasized the importance of financing in unlocking Nigeria’s abundant mineral resources. He highlighted the need for cooperation between the government, private sector, Africa Finance Corporation, banks, financial institutions, and all Nigerians. This partnership is seen as a crucial step in advancing the sector.
The collaborative initiatives between the SMDF and AFC align with President Bola Tinubu’s Renewed Hope Agenda, which focuses on foreign direct investment, job creation, and increased fiscal revenues. The government aims to diversify the economy away from heavy dependence on oil, considering global shifts in energy demand and the impact of climate change on international politics and economics.
The Executive Secretary/CEO of SMDF, Fatima Umaru Shinkafi, emphasized that the partnership between AFC and SMDF is pivotal for harnessing Nigeria’s mineral wealth and positioning the country as a global player in the mining industry. She noted that over 90% of Nigeria remains underexplored, and this partnership will encourage resource exploration, derisk exploration activities, and enhance Nigeria’s appeal as a destination for resource exploration.
Shinkafi highlighted that mining projects occur in phases, and the initiative aims to address the problem of many projects being abandoned during the developmental studies phase. The collaboration supports the transformation agenda of the Minister of Solid Minerals Development, Dr. Dele Alake.
