EU, Nigeria eye increased trade and investment in solid minerals sector

The European Union (EU) and Nigeria have signaled their intent to significantly increase trade and investment in Nigeria’s solid minerals sector. This development follows a productive meeting on Tuesday between the EU Ambassador to Nigeria and ECOWAS, Mr. Gautier Mignot, and the Minister of Solid Minerals Development, Dr. Dele Alake, in Abuja.  

During the meeting, Ambassador Mignot conveyed the EU’s keen interest in deepening trade and investment ties within Nigeria’s burgeoning solid minerals sector. He emphasized the EU’s dedication to establishing trade relationships that are equitable and sustainable for all participating parties.

Furthermore, Mr. Mignot stated his commitment to consulting with EU member states and encouraging European firms to actively explore the diverse investment opportunities present in Nigeria’s mining sector.

The ambassador commended Nigeria’s ongoing mining reforms, particularly those aimed at fostering value addition and enhancing security measures at mining locations across the nation.

He explained that the purpose of the visit was to gain a comprehensive understanding of Nigeria’s current mining landscape and to identify specific areas where collaboration and mutual benefits could be realized.

In response, Minister Alake warmly welcomed the EU’s support in the ongoing efforts to reform Nigeria’s mining industry, with the goal of making it more transparent and increasingly attractive to potential investors.

He reaffirmed Nigeria’s strong willingness to engage with EU member states and investors to unlock the country’s vast mineral wealth for the purpose of shared prosperity and mutual economic growth.

Alake emphasized that the robust existing relationship between the EU and Nigeria provides a strong and reliable foundation for the development of concrete and impactful projects within the solid minerals sector.

He highlighted Nigeria’s significance as a key source of critical minerals essential for the global energy transition, specifically mentioning the availability of high-grade lithium.

“We have lithium, cobalt, and copper in viable quantities.

This year, we’re expanding exploration to uncover more reserves,” Minister Alake stated.

He further revealed that even preliminary exploration data suggests the presence of over $700 billion in mineral deposits, representing a substantial and promising investment potential.  

To actively attract investors, Minister Alake outlined a range of incentives, including tax waivers on essential equipment, the guarantee of full profit repatriation, and enhanced security through the deployment of dedicated mining marshals.

He also noted that streamlined licensing procedures have been implemented to facilitate smoother operations for serious investors.

However, Minister Alake emphasized that local value addition is a mandatory requirement for securing a mining license in Nigeria. “Investors must plan for local processing.

That’s how we generate jobs, transfer technology, and maximize economic benefits,” he asserted.

He cited the issue of lithium smuggling as a prime example, warning that it deprives Nigeria of its full economic and technological potential.

Alake noted that pre-shipment inspections have already commenced, and the implementation of satellite monitoring from mining sites to ports is currently underway to further sanitize the sector.