(Ecofin Agency) - Valued at $700 billion, Nigeria's mineral resources include iron, lithium, gold, and coal. To tap into this potential, the country launched several reforms in its mining sector, which currently contributes less than 1% to GDP. 

From November 6 to 9, 2024, the Nigerian Embassy in South Africa hosted the inaugural Nigerian Mining Investment Forum. During the event, Nigerian Minister of Mines Dele Alake highlighted the strengths of Nigeria's mining sector and encouraged investors to explore opportunities in the country.

“I urged South African investors and global mining giants to take advantage of the opportunities presented by the ongoing reforms and the improved business climate in Nigeria’s mining sector. I emphasized that Nigeria is open for business [...]” said the official in a message posted on November 10 on his X (formerly Twitter) account.

Organized in partnership with Rosebank Capital, the three-day event aimed to increase South African investments in Nigeria's mining industry. According to Nigeria’s National Bureau of Statistics (NBS), South Africa ranked fifth among foreign direct investors in Nigeria in 2023, with $116.37 million invested.

The forum falls under Nigeria’s strategy to expand mining’s contribution to the national economy. Although Nigeria's mineral resources are estimated at $700 billion—comprising lithium, iron, coal, and gold—the mining sector accounts for less than 1% of GDP.

To address this, Nigerian authorities have signed agreements with the Africa Finance Corporation and Xcalibur Multiphysics to improve geological data availability through a new database.

Additionally, cooperation agreements have been established with Saudi Arabia and the United Arab Emirates for investment in the mining sector.

Nigeria has also formed a joint working group with the United States to explore potential collaboration in developing its mining industry.

Emiliano Tossou