Nigeria is looking to tap into its vast mineral wealth, valued at $700 billion, by attracting greater investment into its mining sector. The country is rich in iron ore, lithium, gold, and coal, but the mining industry currently contributes less than 1% to Nigeria’s GDP. In a bid to transform this potential into economic growth, Nigeria has launched several reforms and is actively seeking international partnerships to expand the sector’s contribution to the national economy.
From November 6 to 9, 2024, the Nigerian Embassy in South Africa hosted the inaugural Nigerian Mining Investment Forum, which aimed to strengthen ties with South African investors and global mining giants. The three-day event, organized in partnership with Rosebank Capital, highlighted Nigeria’s efforts to improve its mining business climate through ongoing reforms and investments in infrastructure.
During the forum, Nigerian Minister of Mines, Dele Alake, underscored the country’s mining potential, calling on investors to seize the opportunities available in the sector. In a statement posted on his social media account on November 10, Alake said, “I urged South African investors and global mining giants to take advantage of the opportunities presented by the ongoing reforms and the improved business climate in Nigeria’s mining sector. I emphasized that Nigeria is open for business.”
Nigeria’s strategy to boost its mining sector’s contribution to the national economy is reflected in the growing foreign interest. According to Nigeria’s National Bureau of Statistics (NBS), South Africa ranked as the fifth-largest foreign direct investor in Nigeria in 2023, with $116.37 million in investments. The forum was part of efforts to further increase South African involvement in the Nigerian mining industry.
In addition to strengthening ties with South Africa, Nigeria is also seeking investment from other key global players. The government has entered into agreements with the Africa Finance Corporation and Xcalibur Multiphysics to enhance geological data availability through a new database, aiming to provide investors with more accurate and detailed information about the country’s mineral resources.
Nigeria is also working to deepen cooperation with other nations. The country has signed investment agreements with Saudi Arabia and the United Arab Emirates, and it has formed a joint working group with the United States to explore further collaboration in the mining sector.
With its wealth of untapped resources and ongoing reforms, Nigeria is positioning itself as a key player in the global mining market. The country’s efforts to modernize its mining industry and attract foreign investment could significantly contribute to the diversification of its economy, helping to reduce its reliance on oil exports and foster long-term economic growth.
