Nigeria, Japan Explore Partnership in Mining Sector
Nigeria and Japan have taken significant steps towards strengthening collaboration in the mining sector.
The Minister of Solid Minerals Development, Dele Alake, and officials of the Japan Organisation for Metals and Energy Security have pledged to work out plans to encourage Japanese mining companies to invest in Nigeria’s vast solid minerals industry.
The commitment emerged during deliberations at the Ninth Tokyo International Conference on African Development in Yokohama, Japan, where President Bola Tinubu concluded talks with Japanese Prime Minister Shigeru Ishiba, according to a statement on Sunday.
JOGMEC President Michio Daito welcomed Alake and his team, acknowledging Nigeria’s mineral wealth but stressing the need for broader economic information to help Japanese firms evaluate potential risks. “We need more information on power generation for industries, tax incentives, labor, duty waivers, free trade zones, and entry and exit conditions,” Daito said, adding that Japanese mining firms rely on JOGMEC to guide their investment decisions abroad.
In response, Alake outlined recent economic reforms under President Tinubu’s administration, including the removal of fuel subsidies and exchange rate unification, which have “eased investments and positioned the solid minerals sector.”
He emphasised Nigeria’s critical role in Japan’s supply chain for processed minerals, urging JOGMEC to “invest in the extraction and processing of its mineral needs in Nigeria before exports to Japan in line with the administration’s policy on local value addition.”
Alake highlighted Nigeria’s competitive advantages, stating, “The Nigerian workforce is one of the best in the world because of high literacy and educational levels.” He added that the Tinubu government has embarked on critical infrastructure projects in rail, road, and water transportation to support industries.
“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,” Alake said. He assured Japanese investors of favorable investment conditions, including waivers of import duty on mining machinery and tax holidays.
The minister also introduced the Nigeria Solid Minerals Company, represented by its CEO, Martins Imonitie, designed to take equity stakes in mining projects and provide a framework for credible partnerships.
Both parties agreed to prioritize the exchange of technical information and explore opportunities for direct engagement between JOGMEC and the NSMC, paving the way for a long-term strategic partnership.
Earlier, Alake met with major Japanese trading houses, including Mitsubishi Corporation, Sumitomo Corporation, and Mitsui & Company, which expressed interest in Nigeria’s mining sector pending JOGMEC’s support.