The maiden edition of the Investment Summit and Roadshow for Solid Minerals in Nigeria held recently in Johannesburg, South Africa, has come and gone, but the immense potential for transforming our mining sector is yet to be fully analysed. Organised by the Nigerian High Commission to South-Africa in collaboration with Rosebank Capital, the investment forum showcased ongoing reforms in the mining sector and Nigeria’s vast solid minerals potential to South-African mining giants and international financial institutions whilst facilitating engagements between the Federal Government and companies of the foremost mining nation towards developing the mining sector.
Apart from the keynote address delivered by Dr. Dele Alake, represented by the Permanent Secretary, Dr. Mary Ogbe, private breakout sessions that involved direct engagements with investors, with emphasis on how the ministry can assist in making informed decisions about the mining sector, address perceiving misgivings about Nigeria’s business climate whilst throwing more light on efforts to reposition the mining sector were held. The enthusiasm of investors after the parley was palpable.
Of major concern to investors is policy flip-flop, which they consider a disincentive to investments. The Nigerian delegation effectively countered this by citing the ongoing process to amend the Nigeria Minerals And Mining Act (2007), which will give legal teeth to reforms and ensure mining policies are entrenched. On friction between operators and host communities, investors were briefed on the provisions of the revised Community Development Agreements (CDAs) which stipulates consent from host communities before approval of mining licenses; collaboration with sub-national entities to strengthen the Mineral Resources and Environmental Management Committee (MIREMCO) amongst others.
The innovative Nigeria Mineral Decision Support System (NMDSS) played a significant role in wooing South-African investors at the Roadshow. The online platform launched some months ago by the Minister was touted as the answer to Frequently Asked Questions (FAQ) by mining enthusiasts about Nigeria’s mining industry. Equipped with high resolution geophysical, hydrological and topographical data alongside data of mineral occurrences in Nigeria and its geology, the NMDSS was showcased as the go-to portal to make informed investment decisions about the mining sector from anywhere in the world with a click of a button on a smartphone or other gadgets, without recourse to hitherto rigours of travelling down to Nigeria.
President Bola Tinubu’s sing song to foreign companies – “Easy In, Easy Out”, which implies full repatriation of profits to home countries was dangled to investors alongside the minister’s signature tax waivers on imported mining equipment. In making a decision to invest in Nigeria, Alake reiterated the policy of local value addition thus, “We expect mining companies to extract and process to a substantial degree before exporting to other countries. This strategy is designed to enable transfer of skills to young miners, provide employment for teeming youths and women, and contribute significantly to our country’s Gross Domestic Product (GDP)”.
In the time past, the cumbersome process of applying for mining licenses was a disincentive to investments, but that has changed. Participants at the Johannesburg investment summit were regaled with the new improved digitized Electronic Mining Cadastral System (EMC+), a 24/7 online platform designed by the Mining Cadastral Office (MCO) which enables prospective operators to apply and follow up on application for mining licenses from the comfort of their homes, anywhere in the world.
Aside from the very productive engagements with South-Africa based companies, the Ag. Nigeria High Commissioner to South Africa, Amb. Tope Ajayi facilitated discussions between the Nigerian delegation and South-African mining professionals on the feasibility of an exchange programme that will culminate in the certification of Nigeria’s mining professionals on “Professional accreditation for authentication of data” in South-Africa. A Government to Government (G2G) model was conceived for the exchange programme after deliberations and efforts are already ongoing to get the buy-in of both countries at the highest level.
The well-articulated engagements by the ministry seemed to strike a chord with potential investors as not a few were keen on investing in Nigeria. Of particular significance was the commitment of a major shareholder of the Pilanesberg Platinum Mines to replicate something similar in Nigeria. He further pledged a visit to the country before the end of the year to fine-tune investment plans.
Another highlight of the Roadshow was the MOU signed by the Enugu State Government and Skote Limited for the development of a coal processing plant and a 1,000 mw power plant in Enugu State within 5 years, which is expected to gulp $1bn. Crystal Partners, a diversified Investment holding company based in South-Africa with mining assets in three African countries also expressed interest in investing in the mining sector, proposing to visit Nigeria before the end of the year to concretize partnership.
Indeed, the maiden edition of the International Investment Forum and Roadshow in South Africa for Nigeria’s Solid Minerals is a phenomenal success by all standards. What is required is the tenacity of purpose to broker the deals and translate expression of interest into investments in our mining sector. Under Dr. Dele Alake’s proactive leadership, rest assured it’s a done deal!
Segun Tomori , FSCA is the Special Assistant on Media to the Honourable Minister of Solid Minerals Development.
