Alake: Nigerian investors in diaspora key to reforming mining sector

Dele Alake, the minister of solid minerals development, says transforming the mining sector requires the involvement of Nigerian investors in the diaspora.

Alake said Nigerian investors abroad are essential partners in unlocking the financing and technical capacity needed to transform the mining sector.

The minister said this on Monday at a meeting with the diasporan investors led by Abike Dabiri-Erewa, chairman of the Nigerians In Diaspora Commission (NIDCOM).

Alake said in view of dwindling oil revenue amid global transitions to clean energy, the shift in focus to the solid minerals sector is pivotal to the economic survival of Nigeria.

According to Alake, other sectors of the economy were neglected due to the free flow of oil revenue, causing Nigeria to descend from a producing nation to a consumer country.

He said Nigeria is suffering the consequences of desecrating social values caused by the free flow of money.

“Two very fundamental reasons have led us to shift attention away from oil into the mining sector. First is economic survival. The world is transitioning from fossil fuels to clean energy. The hydrocarbons are on a downward trend,” the minister said.

“So, if we are not careful to shift attention from oil, we will be in an economic dire straits in a few years. The second is global warming, which every country is now conscious of, and making attempts to reduce hydrocarbons.

“Oil is hydrocarbon, so if global attention is shifting from it, we must also join the clamour for clean energy and to do that, we take recourse to our solid minerals which God has given us in great abundance.”

He encouraged Nigerian investors to channel their capital to the mining sector, which he said has an abundance of critical minerals like Lithium, gold, and the like across the country.

The Minister restated the commitment of the Federal Government to ensure local value addition by prospective mining operators

While calling on the diasporan investors to join hands with the government, Alake the federal government is committed to ensuring local value addition by prospective mining operators.

Alake said: “You set up the factories here, you refine, you produce, so that the beneficiation for our people will increase. Make your money no doubt, but the country will not be short-changed.”

“I made a policy announcement recently that henceforth, we are not going to license anybody without a plan for local value addition with timelines, and we will monitor.”

He said the advanced countries are in the position they are today due to meticulous planning and execution, as well as sacrifice by previous generations.

The minister said the younger generation in the advanced countries are enjoying the sacrifice today, so that should encourage the present Nigerian generation to make the necessary sacrifices for the country’s future generations.

“… so that in future, other parts of the world too will be running to Nigeria because for one thing, in my considered view, this is one of the most blessed country in the world in terms of our climate, resources – human and material. There is no aspect of human endeavours that we don’t have Nigerians excelling,” Alake said.

‘A NEW SHERIFF IN TOWN’

Alake said the challenge faced previously by Nigeria was the inability to harness the country’s resources for the benefit of our people.

This, he said, is a thing of the past, as there is a new sheriff in town and everything is changing.

“This is the first time in the history of this country that we have a leader who has the combined three attributes of progressive leadership,” the minister said.

“Those critical factors are vision, knowledge, and courage. The effect of that is the visibility and renewed focus on the mining sector.”

Alake said a new security architecture — with an infusion of technology and inter-agency security collaboration — is being created to improve security and provide an enabling environment for investors.

Highlighting some of the activities of his ministry, Alake said a memorandum of understanding (MOU) has been signed with GeoScan Ltd, a German company, which will deploy its latest proprietary technology in the mining sector to explore solid minerals as far as 10,000m underground — with zero net environmental impact.

According to Alake, investors will be able to make informed judgments about the viability of their investments, as the MOU will lead to the generation of big geo-data.

MINING MINISTRY WORKING WITH AFC TO RAISE FUNDS

Alake informed the Nigerian investors that the mining ministry and the African Finance Corporation (AFC), the Solid Minerals Development Fund (SMDF) and other institutions are in talks to raise the necessary funds to finance the mining industry.

He said his ministry is also preparing a regulatory framework that will ensure an enabling environment for prospective investors.

Speaking at the meeting, Dabiri-Erewa said all that the investors are requesting is an enabling environment.

While commending Alake for the ongoing reforms of the mining sector, Abike said investments in the mining sector will grow significantly in no distant future considering the commitment of President Bola Tinubu to diversify Nigeria’s economy.

Ali Garuba, who spoke on behalf of the Nigerians in Diaspora investors, said the reforms and renewed interest in the sector have attracted global attention.

“Mining is a sector that we are really passionate about. It’s an opportunity to be trained and invested. This is a sector that is populated by foreigners, and we know that the value they get from it and we get in return is very minute,” Garuba said.

“We know that as Africans, we can leverage our Diaspora community to develop that sector, and there is a high interest in it. With Mining, we can create so many jobs that a whole community can be developed, just by the hard labour of the miners. So we are really excited about it.

“We want to be role models so that young people can aspire to become entrepreneurs. Entrepreneurship is where wealth is. That’s how we are going to create the middle class in this country. It’s not only about working in government, everybody wants to work in government.

“If nobody wants to grow the economy, someday, the money is not going to be there in government. So, we in Diapora are a very powerful tool that we have in Nigeria to make a difference. To make this country occupy its rightful position on the continent and in the world.

“We have listened with rapt attention to the minister, and we will contribute our quota to the vision to make solid minerals the largest contributor to our nation’s economy.”

Dabiri-Erewa said the investors who visited Alake are part of the delegates of the 6th Nigeria in Diaspora Investment Summit (NDIS) — where over 6,000 participated physically and online.