Nigeria has drawn over $2.6 billion in foreign direct investment (FDI) into its mining sector over the past two years, according to Minister of Solid Minerals Development, Dr. Dele Alake. He attributed the growth to strengthened governance, digitised licensing processes, and efforts to curb illegal mining activities.
Speaking at the Powering Africa Summit in Washington, D.C., during a panel titled “Critical Minerals in Africa: Meeting Global Demand,” Alake urged the United States and African nations to establish regional energy and industrial hubs to accelerate cross-border mining industrialisation and secure global supply chains for critical minerals.
He proposed developing industrial corridors similar to the Lobito Corridor, highlighting the Lagos-Abidjan Corridor (spanning Nigeria, Benin, Togo, Ghana, and Côte d’Ivoire) and the Walvis Bay Corridor as potential economic catalysts. Alake noted that infrastructure like nuclear power in one country could service entire corridors, promoting local beneficiation, technology transfer, manufacturing, and regional industrial growth.
Under President Bola Ahmed Tinubu’s administration, Nigeria’s mining sector has seen significant reforms, including improved regulatory frameworks, digitised processes, and measures to enhance ease of doing business. These reforms now guarantee secure tenure for mineral title holders, providing long-term stability for investment decisions.
The minister also highlighted enforcement efforts, noting that newly established “Mining Marshals” have arrested over 350 suspected illegal miners, including foreign nationals, with more than 150 facing prosecution.
To encourage further international investment, Alake outlined incentives such as tax waivers on imported mining equipment, full repatriation of profits after royalties and taxes, and expanded access to geological data. The government is also generating certified scientific data to support informed investment decisions.
Speaking at the summit, Sarah Whitten, Senior Vice President of the U.S. Export-Import Bank, said American financial institutions are ready to support African mining projects, emphasizing the importance of political stability in attracting private sector capital.
The panel featured global leaders, including Guinea’s Minister of Energy, Sekou Camara, and executives from Denham Capital, ReElement Technologies, and TechMet.
