Nigeria is ready to play an important role in meeting the global demand for critical minerals, according to the Minister of Solid Minerals Development, Mr. Dele Alake.
At a special session on the sidelines of the ongoing United Nations General Assembly (UNGA) in New York, the minister said that the nation’s mineral resources make it one of the top 10 players in the energy sector.
The minister spoke on the topic, ‘From critical minerals to energy transition: Africa in the driver’s seat’, at the event organised by the Corporate Council of Africa.
According to a statement by the ministry’s Deputy Director (Information), Mr. Alaba Balogun, the minister said that, despite being behind of other African countries in mining, Nigeria’s mineral deposit is valued at over $700 billion with huge potential to increase.
Alake added that Africa is fit for the driver’s seat of the global energy transition that will be driven by critical minerals.
He said: “Nigeria has always occupied a special position in global energy discourse. Nigeria played a vital role as a key oil exporter during the era of hydrocarbon and became a top 10 exporter of oil. As the face of global energy changes, Nigeria once again emerges as a key supplier of gas which we know is an important energy transition fuel today. Last year in the midst of the Russia-Ukraine crisis, Nigeria was one of the top exporters of Liquefied Natural Gas (LNG) to Europe and was the sixth largest LNG global exporter in 2022. As you can see, there is a clear trend, whenever Nigeria is active in the global energy space, it emerges a top 10 global player and it will be no different with critical minerals.
“Nigeria is endowed with a vast deposit of minerals critical to our new world. In our new world mobility requires a new form of energy driven by minerals in our new electric vehicle world; technology is more mineral-dependent; our energy source will depend more on the energy converted from the sun and other sources; and energy storage is even more mineral reliant. This trend does not have any reversal in sight and demand will only continue particularly as the world seeks and envisions a lower carbon future where environment, social and governance factors are prioritized in governance and investment decisions. Therefore, minerals are at the forefront”.
He also traced the transition from different sources of energy to the now prominent renewable sources of energy.
“The shift from fossil-based energy systems to renewable energy such as wind and solar has meant that minerals that were not a part of general and public parlance have become a part of everyday speech. Today, lithium for example is woven through everyday conversations and this only just the beginning.
“Without a doubt, minerals are a major focus of our world today and rightly so. Nigeria is well positioned to play an important role in our new world. ur Solid mineral sector is valued at over $700 billion and we know there is more to be discovered. Endowed with critical minerals, Nigeria should not and dare I say, cannot be ignored.
“We may not have a strong historic mining history like some of our neighbours such as Ghana, Mali and those in the South such as South Africa, Botswana, etc. but things are about to change,” he added.
According to him Lithium hosted pegmatite rocks are available in Nigeria across states such as Nasarawa, Kwara, Oyo, Abuja, Kebbi and much more. Graphite is found in states such as Kaduna. One of the key objectives of the President Bola Tinubu’s administration according to Mr. Alake is to develop the entire value chain in-country – in the case of lithium.
“We want to go from Ore to concentrate to lithium hydroxide to end product,” the Minister emphasised.
He also listed states with rare Earth Elements critical for wind turbines and EV motors as Nasarawa and Plateau.
He further said: “Platinum group minerals can be seen in the middle belt such as Benue and other regions. We have nickel in Kaduna and other locations. Zinc which is vital to offshore and onshore wind power generation has been a mainstay in Nigeria and is available in Ebonyi, Nasarawa, Plateau and so many other Nigerian states”.
Alake said that the nation was ready for foreign investment in the solid mineral sector, with President Bola Tinubu giving it a prominence.
He added: “It is clear that Nigeria is important to the world and we are ready for investment, collaboration and partnerships in our solid mineral sector. Our new president, President Bola Ahmed Tinubu has made the solid mineral development sector vital his administration and we are committed to making it a key contributor to our national GDP. A lot of work has been done in the sector under former administrations and we plan to take it further. Nigeria is prime to becoming a mining destination on the
continent and it will happen in our time”.
He listed the incentives available for potential investors as:
1. up to 95 per cent capital allowances of qualifying capital expenditure.
2. up to 3-5 years tax holidays.
3. possible capitalization of expenditure on exploration and surveys.
4. free transferability of foreign currency
through the Central Bank of Nigeria for servicing of foreign loans and remittances of foreign capital and much more.
He said the country was interested in joint ventures with foreign major mining companies to explore the critical minerals.
Many leaders in the public sector, financial services and mining sectors were present at Roundtable session. Some of them include Minister of Solid Minerals and Mines from Namibia, Ambassadors of Tanzania to United States, Ambassador of Zambia to United States, Alexia Latortue from US Treasury Department, Ms. Inesha Premaratne from US International Development Finance Corporation, Seth Levey from Glencore, Hannah Gardner from DLA Piper, Daniele Laporta from Gerald Group among others.
