Dele Alake: Nigeria’s solid minerals sector valued at over $700bn

Dele Alake, minister of solid minerals development, says Nigeria is well placed to meet the global demand for critical solid minerals.

Alake spoke on Wednesday on the sidelines of the ongoing United Nations General Assembly (UNGA) in New York.

The minister said despite being behind other African countries in mining, Nigeria’s mineral deposit is valued at over $700 billion with huge potential for increase. 

“Nigeria is endowed with a vast deposit of minerals critical to our new world,” Alaba Balogun, deputy director of press at the ministry of solid minerals, quoted Alake as saying. 

“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 (ESG) factors are prioritized in governance and investment decisions.

“Therefore, minerals are at the forefront. 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. Our solid mineral sector is valued at over USD$700bn and we know there is more to be discovered.

“Endowed with critical minerals, Nigeria should not and dare I say, cannot be ignored.”

Alake said lithium-hosted pegmatite rocks can be found in Nasarawa, Kwara, Oyo, Abuja, Kebbi among others, adding that graphite is found in Kaduna. 

The minister, who made the case for direct foreign investments (DFI) into Nigeria, said the country is ready for collaboration and partnership in the solid minerals sector. 

He said Nigeria will grant up to 95% capital allowances of qualifying capital expenditure, 3-5 years tax holidays and possible capitalisation of expenditure on exploration and surveys to potential investors. 

Alake added that investors will also have access to “free transferability of foreign currency through the Central Bank of Nigeria (CBN) for servicing of foreign loans and remittances of foreign capital”.