UNGA: Nigeria’s minerals deposit worth $700bn, Alake tells investors

Dele Alake

….says Nigeria can’t be ignored

AS the United Nations General Assembly, UNGA, continues in New York, the Minister of Solid Minerals Development, Dr Dele Alake, yesterday, told investors Nigeria’s minerals deposit is worth $700 billion.

This was made known in a statement signed by the Deputy Director, Information, Ministry of Solid Minerals Development, Alaba Balogun.

Alake made the disclosure while speaking on the topic, ‘From Critical Minerals to Energy Transition: Africa in the Driver’s Seat’ at the event organised by the Corporate Council of Africa on the sidelines of the ongoing UNGA.

He also said the potential of the sector will soon surpass the $700 billion worth it indicates, and pointed that despite Nigeria being behind some African mining countries, it has the potential to take the lead soon based on the over 44 assorted solid minerals in all 774 local government areas of the 36 States and the Federal Capital Territory, FCT, Abuja.

He further stated that Nigeria has always occupied a special position in global energy discourse, and Nigeria is ready to play an important role in meeting the global demand for critical minerals.

He also asserted that all is clear for Africa to occupy the driver’s seat of the global energy transition that will be driven by critical minerals.

Meanwhile, the Minister went on to woo investors as he highlighted some mouthwatering incentives made available for potential investors; up to 95% capital allowances of qualifying capital expenditure; up to three to five years tax holidays; possible capitalization of expenditure on exploration and surveys; free transferability of foreign currency through the Central Bank of Nigeria for servicing of foreign loans and remittances of foreign capital and much more.

He said the country was interested in joint ventures with foreign major mining companies to explore the critical minerals.

He said: “Nigeria has always occupied a special position in global energy discourse. Nigeria played a vital role as a key oil exporter during the era of hydrocarbon and became a top 10 exporter of oil.

“As the face of global energy changes, Nigeria once again emerges as a key supplier of gas which we know is an important energy transition fuel today.

“Last year in the midst of the Russia-Ukraine crisis, Nigeria was one of the top exporters of LNG to Europe and was the 6th largest LNG global exporter in 2022.

“As you can see, there is a clear trend, whenever Nigeria is active in the global energy space, it emerges a top 10 global player and it will be no different with critical minerals.

“Nigeria is endowed with a vast deposit of minerals critical to our new world.

“In our new world mobility requires a new form of energy driven by minerals in our new electric vehicle world; technology is more mineral-dependent; our energy source will depend more on the energy converted from the sun and other sources; and energy storage is even more mineral reliant.

“This trend does not have any reversal in sight and demand will only continue particularly as the world seeks and envisions a lower carbon future where Environment, Social and Governance (ESG) factors are prioritized in governance and investment decisions. Therefore, minerals are at the forefront.”

According to him, Lithium hosted pegmatite rocks are available in Nigeria across states including Nasarawa, Kwara, Oyo, Abuja, Kebbi and others. Graphite is found in States including Kaduna.

He maintained that one of the key objectives of the President Bola Tinubu’s administration is to develop the entire value chain in-country, in terms of lithium.

“We want to go from Ore to concentrate to lithium hydroxide to end product.

“The shift from fossil-based energy systems to renewable energy such as wind and solar has meant that minerals that were not a part of general and public parlance have become a part of everyday speech.

“Today, lithium for example is woven through everyday conversations and this only just the beginning.

“Without a doubt, minerals are a major focus of our world today and rightly so.

“Nigeria is well positioned to play an important role in our new world. Our Solid mineral sector is valued at over USD$700bn and we know there is more to be discovered. Endowed with critical minerals, Nigeria should not and dare I say, cannot be ignored.

“We may not have a strong historic mining history like some of our neighbours such as Ghana, Mali and those in the South such as South Africa, Botswana, and others but things are about to change”, he added.

He also listed States with rare Earth Elements critical for wind turbines and EV motors as Nasarawa and Plateau.

“Platinum group minerals can be seen in the Middle Belt such as Benue and other regions.

“We have nickel in Kaduna and other locations. Zinc which is vital to offshore and onshore wind power generation has been a mainstay in Nigeria and is available in Ebonyi, Nasarawa, Plateau and so many other Nigerian States”, he said.

He further added that the nation was ready for foreign investment in the solid mineral sector, with President Bola Tinubu giving it a prominence.

“It is clear that Nigeria is important to the world and we are ready for investment, collaboration and partnerships in our solid mineral sector.

“Our new president, President Bola Ahmed Tinubu has made the solid mineral development sector vital in his administration and we are committed to making it a key contributor to our national GDP.

“A lot of work has been done in the sector under former administrations and we plan to take it further. Nigeria is prime to becoming a mining destination on the continent and it will happen in our time”, he said.

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