Nigeria, Japan strengthen mining ties in Tokyo

Nigeria and Japan have taken significant steps to enhance cooperation in the mining sector with the Dele Alake, Minister of Solid Minerals Development, meeting with officials of the Japan Organization for Metals and Energy Security (JOGMEC) at the 9th Tokyo International Conference for African Trade and Development (TICAD9).

“Nigeria would be critical to Japan’s needs for processed minerals to drive its economy.” According to a statement issued by the Ministry of Solid Minerals Development on behalf of Dele Alake, the Minister.

He encouraged JOGMEC to invest in the extraction and processing of minerals in Nigeria, citing the Country’s policy on local value addition.

Michio Daito, JOGMEC President, welcomed the Minister and his team, noting that Nigerian mineral resources are well-known but Japanese mining companies require more information on the overall Nigerian economy to calculate investment risks.

“Japanese mining firms rely on JOGMEC to make investment decisions in foreign countries,” Daito said, requesting information on infrastructure supporting mining.

Alake addressed concerns on power generation, tax incentives, labor, duty waivers, and entry and exit conditions.

“The laws have been amended to enable industries to manage their needs, and electricity shall be dedicated to industrial sectors,” he assured.

He also highlighted the reforms of President Bola Tinubu’s Administration, which had eased investments and positioned the solid minerals sector.

The Minister emphasised the benefits of producing and processing critical minerals in Nigeria, stating that “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.”

He also assured JOGMEC that Japanese companies would have access to waivers of import duty on mining machinery and enjoy tax holidays.

The meeting concluded with a mutual understanding of the immense potentials for a long-term strategic partnership between Nigeria and JOGMEC. Both parties agreed to prioritise the exchange of technical information and explore opportunities for direct engagement between JOGMEC and the Nigeria Solid Minerals Company (NSMC).

The NSMC, represented by its CEO, Martins Imonitie, is designed to take an equity stake in the projects of mining companies.

Alake introduced the NSMC to provide additional comfort and a solid framework for partnership.

Earlier, Alake addressed a bilateral conference organised by the Nigerian Embassy, highlighting the readiness of the Nigerian economy and solid minerals sector for investment.

The Minister’s engagement in productive dialogue with major Japanese trading houses, including Mitsubishi Corporation, Sumitomo Corporation, and Mitsui and Company, elicited their interest in looking at Nigeria as a serious mining destination.

As President Bola Tinubu concluded talks with Japanese counterpart, Shigeru Ishiba, the meeting between Alake and JOGMEC officials marked a significant milestone in Nigeria-Japan mining cooperation.

Kehinde Bamigbetan, Special Adviser to the Minister, noted that the development would open up new opportunities for investment and growth in Nigeria’s solid minerals sector.