Nigeria, Japan move to boost cooperation in mining sector
Nigeria and Japan are progressing with plans to enhance collaboration in the mining sector, with Dr. Dele Alake, the Minister of Solid Minerals Development, and representatives from the Japan Organisation for Metals and Energy Security promising to encourage Japanese investments in Nigeria's abundant mineral assets.This commitment emerged after discussions during the Ninth Tokyo International Conference on African Development in Yokohama, where President Bola Tinubu engaged with Japanese Prime Minister Shigeru Ishiba, as stated in a release on Sunday.
In welcoming Alake and his team, JOGMEC President Michio Daito recognized Nigeria's rich mineral resources but stressed the importance of comprehensive economic data to assist Japanese companies. "We require more insights regarding power generation for industries, tax incentives, workforce conditions, duty waivers, free trade zones, and the terms for entry and exit," Daito indicated, underscoring JOGMEC's vital role in influencing Japanese businesses' decisions for international investments.
Alake responded by outlining significant economic reforms initiated under President Tinubu, such as the elimination of the fuel subsidy and unification of the exchange rate, which he claimed have enhanced Nigeria's investment environment and created fresh opportunities within the solid minerals sector.
He emphasized Nigeria's crucial position in Japan's mineral supply chain and urged JOGMEC to focus on both extraction and local processing before exporting, in accordance with the administration's policy aimed at value addition.
Alake remarked, "The Nigerian workforce ranks among the best globally due to high educational levels and literacy rates."
He also pointed out that the Tinubu administration has introduced essential infrastructure projects in rail, road, and water transport to support industrial development.
"In terms of economies of scale, the production and processing of essential minerals in Nigeria is more economical and profitable due to lower production costs," Alake stated.
He guaranteed Japanese investors a conducive business environment, highlighting advantages such as duty waivers for mining equipment and tax holidays.
The minister also presented the Nigeria Solid Minerals Company, headed by CEO Martins Imonitie, which is designed to take equity interests in mining projects and promote credible partnerships. Both parties concurred on the need to prioritize the exchange of technical information and to consider direct collaboration between JOGMEC and the NSMC, establishing a foundation for a lasting strategic alliance.
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