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Mining industry

Nigeria and Japan Pledge to Strengthen Mining Partnership

Strategic Insights

— 1 min read

Japanese mining companies have expressed interest in investing in Nigeria's solid minerals sector following productive dialogue between Minister of Solid Minerals Development, Dr Dele Alake, and officials of the Japan Organization for Metals and Energy Security (JOGMEC) at the 9th Tokyo International Conference for African Trade and Development. President Bola Tinubu's administration has eased investments in the sector with reforms such as the removal of petroleum subsidy and stable exchange rate. Dr Alake highlighted the potential for processed minerals to drive Japan's economy and encouraged JOGMEC to invest in extraction and processing in Nigeria.

Key Takeaways:

  • Nigeria's Minister of Solid Minerals Development, Dr Dele Alake, and officials of JOGMEC pledged to work on plans to encourage Japanese mining companies to invest in Nigeria's mining sector.
  • JOGMEC's president, Mr. Michio Daito, raised issues on power generation for industries, tax incentives, labour, duty waivers, free trade zones, and entry and exit conditions to calculate investment risks.
  • Dr Alake highlighted the reforms of President Bola Tinubu's administration, including stable exchange rate and removal of petroleum subsidy, which have eased investments and positioned the solid minerals sector.
  • The administration has embarked on critical infrastructure projects in rail, road, and water transportation to support industries, and the laws have been amended to enable industries to manage their electricity needs.
  • Dr Alake assured Japanese investors that they will have access to waivers of import duty on mining machinery and enjoy tax holidays.
  • The Honourable Minister introduced the Nigeria Solid Minerals Company (NSMC), represented by its CEO, Mr. Martins Imonitie, to provide additional comfort and a solid framework for partnership.

Statistics:

  • Nigeria has rich mineral resources but lacks infrastructure to support mining, with Japanese companies relying on JOGMEC for investment decisions.
  • The drone-based inspection system will require a large workforce, showcasing the importance of partnering with local companies to ensure skilled labor.
  • The minister assured that the administration has embarked on critical infrastructure projects in rail, road, and water transportation to support industries.

Sources:

  • Ministry of Solid Minerals Development
  • Japan Organization for Metals and Energy Security (JOGMEC)
  • 9th Tokyo International Conference for African Trade and Development
  • Nigerian Embassy in Japan
  • President Bola Tinubu's administration
  • Nigeria Solid Minerals Company (NSMC)

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