Minister of Solid Minerals Development, Dr. Dele Alake, and officials of the Japan Organisation for Metals and Energy Security (JOGMEC) have pledged to work out plans to encourage Japanese mining companies to invest in Nigeria’s mining sector.
The milestone is described by Nigerian officials as “a key takeaway” from deliberations between both parties last Thursday in Yokohama, venue of the 9th Tokyo International Conference for African Trade and Development (TICAD) even as President Bola Tinubu concluded talks with his Japanese counterpart, Shigeru Ishiba.
Welcoming the minister and his team to the talks, JOGMEC’s president, Mr. Michio Daito, observed that Nigeria’s rich mineral resources are well known but Japanese mining companies need more information on the overall Nigerian economy to calculate investment risks.
He raised issues on power generation for industries, tax incentives, labour, duty waivers, free trade zones, and entry and exit conditions.
Noting that Japanese mining firms rely on JOGMEC to make investment decisions in foreign countries, Daito requested information on the state of infrastructure that supports mining.
Responding, Alake highlighted the reforms of President Bola Tinubu’s administration such as the removal of petroleum subsidy and stable exchange rate which have eased investments and positioned the solid minerals sector.
Acknowledging the industrial character of the Japanese economy and the role of electric technologies, Alake said Nigeria would be critical to Japan’s needs for processed minerals to drive its economy.
He encouraged JOGMEC to invest in the extraction and processing of its mineral needs in Nigeria before exports to Japan in line with the administration’s policy on local value addition.
Addressing other economic variables, Alake rated the Nigerian workforce as one of the best in the world because of high literacy and educational levels.
He assured the investors that the Tinubu administration has embarked on critical infrastructure projects in rail, road, and water transportation to support industries.
“In terms of economies of scale, producing and processing the critical minerals you need in Nigeria is cheaper and more profitable as the costs of production are lower.”
On electricity, Alake said the laws have been amended to enable industries to manage their needs and electricity shall be dedicated to industrial sectors.
The minister assured JOGMEC that Japanese companies will have access to waivers of import duty on mining machinery and enjoy tax holidays.
The meeting with JOGMEC was the precursor of earlier meetings held with major Japanese trading houses, including Mitsubishi Corporation, Sumitomo Corporation, and Mitsui & Company by the minister.
The minister’s engagement in productive dialogue elicited the interest of these companies in looking at Nigeria as a serious mining destination as they expand their footprint in Africa.
The companies expressed their readiness to move forward, pending approval and support from JOGMEC. This strategic development prompted the direct engagement with JOGMEC to move the needle and ensure concrete action and results.
To provide additional comfort and a solid framework for partnership, the Honourable Minister introduced the Nigeria Solid Minerals Company (NSMC), represented by its CEO, Mr. Martins Imonitie.
The NSMC is designed to take an equity stake in the projects of mining companies.
The meeting concluded with a mutual understanding of the immense potential for a long-term strategic partnership between Nigeria and JOGMEC.
Both parties agreed to prioritize the exchange of technical information and to explore opportunities for direct engagement between JOGMEC and the NSMC.
Earlier, Alake addressed a bilateral conference organised by the Nigerian Embassy between Japanese investors and ministers.
Attended by ministers and directors-general of federal agencies, Dr Alake highlighted the readiness of the Nigerian economy and, in particular, the solid minerals sector for investment.
