Nigeria and the Kingdom of Saudi Arabia have committed to enhancing collaboration, in a bid to improve the development of solid minerals amid the global shift from fossil fuel to cleaner energy.
The Minister of Solid Minerals Development, Dr. Dele Alake and his Saudi Arabian counterpart, Bandar AlKhorayef, led their respective delegations to a bilateral meeting on the sidelines of the Future Minerals Forum (FMF) in Riyadh, Saudi Arabia.
Alake underscored the critical need for partnership and emphasised that the global energy transition relies on crucial minerals, which Nigeria possesses in abundance. He articulated the necessity for significant investments across the entire spectrum of mineral-related activities, from exploration to processing and local value addition. Alake highlighted Nigeria’s openness to collaboration, especially with nations like Saudi Arabia, expressing the country’s willingness to welcome investments in the mining sector.
“Saudi Arabia has consistently shown a positive affinity to Nigeria and we are eager to reciprocate this gesture by consolidating and enhancing our capacity in exploring and exploiting our natural resources. We are ready to work together to fine-tune specific details and strategies to concretise areas of collaboration within a specified time frame,” the minister declared.
Alake emphasised the potential for investment in local value addition, involving the processing of solid minerals leading to production and the establishment of factories in Nigeria. He pointed out that this approach would generate employment opportunities and have a multiplier effect on the economy. The Nigerian team expressed their readiness to collaborate closely with their Saudi Arabian counterparts to map out strategies and finalise areas of cooperation.
Addressing incentives for investment, Alake highlighted President Bola Tinubu’s policies, including favourable conditions for the repatriation of profits by foreign investors, tax waivers on imported equipment specific to the mining sector and an imminent security architecture aimed at effectively securing mining areas in the country.
In response, AlKhorayef agreed with Nigeria’s commitment to diversifying the economy, with a specific focus on the mining sector. He echoed the importance of local value addition and welcomed collaboration with Nigeria. Both countries mutually agreed to establish a joint technical committee that will follow through on areas of partnership, backed by a comprehensive action plan with specified timelines. This strategic collaboration aims to harness the comparative advantages of each nation for the development of the mining sector.
The Nigerian delegation included the executive secretary of the Solid Minerals Development Fund (SMDF), Hajia Fatima Shinkafi; the director-general of the Mining Cadastral Office (MCO), Dr. Obadiah Nkom; the director-general of the Nigeria Geological Survey Agency (NGSA), Dr. Abdulrasak Garba and the director of the Investments Promotion and Mineral Trade (IPMT) Ime Erikpo. On the Saudi Arabian side, the Minister of Industry and Mineral Resources, HE Bandar AlKhorayef; Vice-minister, Mining Affairs, Engr. Khaled AlMudifer and other government officials represented that country.
