Nigeria and Japan have taken steps towards forging stronger collaboration in the mining sector, as Minister of Solid Minerals Development, Dele Alake, and officials of the Japan Organisation for Metals and Energy Security pledged to work out plans to encourage Japanese mining companies to invest in Nigeria.
According to a statement signed by the Special Adviser to the Minister, Kehinde Bamigbetan, on Sunday, it noted that the commitment emerged during deliberations last Thursday in Yokohama at the Ninth Tokyo International Conference on African Development, where President Bola Tinubu also concluded talks with Japanese Prime Minister, Shigeru Ishiba.
Welcoming Alake and his team, JOGMEC President, Michio Daito, acknowledged Nigeria’s mineral wealth but stressed the need for broader economic information to help Japanese firms evaluate potential risks.
He raised issues on “power generation for industries, tax incentives, labour, duty waivers, free trade zones, and entry and exit conditions.”
Daito also noted that Japanese mining firms rely on JOGMEC to guide their investment decisions abroad and therefore requested more details on infrastructure supporting mining operations.
In his response, Alake outlined recent economic reforms under Tinubu’s administration, including the removal of fuel subsidies and exchange rate unification, which he said had “eased investments and positioned the solid minerals sector.”
Acknowledging Japan’s industrial economy and its reliance on electric technologies, the minister stressed that Nigeria would be critical to Japan’s supply chain for processed minerals. He urged 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.”
Addressing other economic fundamentals, Dr. Alake praised Nigerian labour, 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 also assured that legal reforms now allow industries to generate and manage their own electricity needs, with dedicated power for industrial use. Furthermore, Japanese investors would “have access to waivers of import duty on mining machinery and enjoy tax holidays.”
The talks with JOGMEC followed earlier engagements by Alake with major Japanese trading houses, including Mitsubishi Corporation, Sumitomo Corporation, and Mitsui & Company, all of whom signalled interest in Nigeria pending JOGMEC’s support.
To further strengthen investor confidence, the minister introduced the Nigeria Solid Minerals Company, represented by its CEO, Mr. Martins Imonitie. The NSMC, he explained, is designed to take equity stakes in mining projects, providing a framework for credible partnerships.
The meeting ended with both sides agreeing on the potential for a long-term strategic partnership. They committed to prioritising the exchange of technical information and exploring opportunities for direct engagement between JOGMEC and the NSMC.
AloJapan.com