Abuja — – Over $2.6bn FDI attracted into sector in two Years
The Minister of Solid Minerals Development, Dele Alake, has charged the US and African nations to prioritize the establishment of regional energy hubs as a strategic pathway to accelerate cross-border mining industrialization and strengthen the supply chain of critical minerals essential for the global energy transition.
Speaking at a high-level panel themed “Critical Minerals in Africa: Meeting Global Demand” at the on-going Powering Africa Summit in Washington, D.C., United States, Alake emphasized that sustainable partnerships with Africa remain the fastest route to meeting rising global demand for critical minerals.
He called for the development of regional industrial corridors akin to the Lobito Corridor, noting that similar belts –such as the Lagos-Abidjan corridor, spanning Nigeria, Benin, Togo, Ghana, and Côte d’Ivoire, as well as the Walvis Bay Corridor linking Southern and Central Africa to global markets–could unlock vast mineral potential across the continent.
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According to the minister, such corridors would serve as economic catalysts by driving infrastructure development, enhancing energy access, and promoting regional integration.
“The development of nuclear power in one West African country, for instance, can service an entire corridor. With that in place, local beneficiation, technology transfer, manufacturing, and cross-border industrialization will naturally follow.
“If three to five such corridors are developed in Africa, we would significantly advance industrialization across the continent, creating a win-win outcome for both Africa and the West,” he stated.
Highlighting the impact of reforms under the administration of President Bola Ahmed Tinubu, Alake noted that strengthened governance structures, improved regulatory frameworks, digitization of licensing processes, and enhanced ease of doing business have repositioned Nigeria’s mining sector as a key driver of economic diversification.
He explained that reforms introduced in the last two and half years now guarantee mineral title holders secure tenure, thereby providing the long-term stability required for investment decisions.
In addition, Alake disclosed the government is expanding the generation of scientific and internationally certified geological data to support informed decision-making by both local and international investors.
On security, Alake acknowledged challenges within the sector but noted significant progress through the establishment of Mining Marshals.
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He revealed that over 350 suspected illegal miners including foreign nationals have been arrested within one year, with more than 150 currently undergoing prosecution, asserting that this has sent the right signals that Nigeria means business.
Reaffirming Nigeria’s openness to genuine investors, the minister emphasized strict compliance with local laws and regulations while outlining key investment incentives, including tax waivers on imported mining equipment and full repatriation of profits after due payment of royalties and taxes.
“We have successfully de-risked and sanitized the mining environment, making it conducive to Foreign Direct Investment (FDI). Within the last two and a half years, we have attracted over $2.6 billion in FDI into the sector,” he affirmed.
In her remarks, Senior Vice President and Global Head of Origination at the U.S. Export-Import Bank (EXIM), Sarah Whitten, noted that the mining sector requires successful collaborations contingent on the commitment of participating governments and the sustainability of agreements beyond political cycles.
“American banks are ready to support projects, but our role is to catalyze and unlock private sector capital. There are institutions positioned to directly finance critical minerals projects. If we succeed in unlocking that capital, we have fulfilled our mandate,” she said.
Asides Alake, the panel session featured Guinean Minister of Energy, Hon. Sekou Camara; Managing Partner, Denham Capital, Carl Tricoli; CEO, ReElement Technologies Africa, Ben Kinkaid; Senior Vice-President, Global Head of Origination, US Export-Import Bank (EXIM), Sarah Whitten; Chief Strategic Development Officer, TechMet, Heliana Matza and Partner, Mc Dermott Will & Schulte, Jahan Khandokar.