Abuja: The European Union (EU) and Nigeria have taken significant steps to enhance trade and investment in Nigeria’s burgeoning solid minerals sector. This development follows a recent meeting where EU Ambassador to Nigeria and ECOWAS, Mr. Gautier Mignot, led a delegation to engage with Dr. Dele Alake, Nigeria’s Minister of Solid Minerals Development, in Abuja.
According to News Agency of Nigeria, Mr. Mignot expressed the EU’s keen interest in strengthening trade and investment ties within Nigeria’s solid minerals sector. He highlighted the EU’s dedication to establishing trade relationships that are fair and sustainable for all involved parties. Mr. Mignot also mentioned plans to consult with member states and encourage European firms to explore investment opportunities in Nigeria’s mining industry. He commended Nigeria’s mining reforms, particularly those aimed at value addition and improving security at mining locations nationwide, and noted the visit’s goal of gaining a better understanding of Nigeria’s mining landscape for potential collaboration and mutual benefits.
In response, Dr. Alake welcomed the EU’s support in reforming Nigeria’s mining industry to make it more transparent and appealing to investors. He reiterated Nigeria’s readiness to collaborate with EU states and investors to unlock the nation’s mineral wealth for shared prosperity. Alake emphasized Nigeria’s position as a key source of critical minerals essential for the global energy transition, such as high-grade lithium, cobalt, and copper. He disclosed plans to expand exploration efforts this year to discover additional reserves, with initial findings already suggesting over $700 billion in mineral deposits, pointing to vast investment potential.
To attract investors, Dr. Alake outlined several incentives, including tax waivers on equipment, full profit repatriation, and improved security through dedicated mining marshals. He also mentioned streamlined licensing procedures to facilitate operations for committed investors. However, he stressed the importance of local value addition as a prerequisite for securing a mining license in Nigeria, emphasizing local processing as vital for job creation, technology transfer, and maximizing economic benefits.
Additionally, Dr. Alake highlighted ongoing efforts to ensure traceable mineral exports to curb illegal mining and smuggling, citing lithium smuggling as a specific issue that deprives Nigeria of its full economic and technological potential. He noted that pre-shipment inspections have commenced, and satellite monitoring from pit to port is being implemented to sanitize the sector.