Market News

At the 9th Tokyo International Conference on African Development (TICAD) in Yokohama, the minister of Solid Minerals Development, Dr. Dele Alake, and officials of the Japan Organisation for Metals and Energy Security (JOGMEC) pledged to work out plans to encourage Japanese mining companies to invest in Nigeria’s mining sector.

In a statement released by Kehinde Bamigbetan, special adviser to the minister of solid minerals development, Dr. Alake, it was revealed that both parties agreed to explore strategic frameworks to facilitate Japanese participation in Nigeria’s mining value chain.

This diplomatic engagement followed bilateral discussions between President Bola Ahmed Tinubu and his Japanese counterpart, Shigeru Ishiba. It underscored the geopolitical importance of solid mineral development in African–Asian trade cooperation.

Welcoming Dr. Alake and his delegation, JOGMEC President Mr. Michio Daito acknowledged Nigeria’s vast mineral wealth but emphasised the need for deeper insight into the Nigerian economic landscape to enable Japanese firms to assess investment risk accurately.

Daito made enquiries about power generation for industries, tax incentives, labour, duty waivers, free trade zones, and entry and exit conditions.

He said, “Japanese mining companies rely on JOGMEC to make informed investment decisions abroad. We must understand the infrastructure ecosystem that supports mining operations in Nigeria.”

In response, Dr. Alake articulated President Tinubu’s administration’s reform agenda, citing the removal of petroleum subsidies and stabilising the naira as transformative measures that have invigorated investor confidence and recalibrated the economic environment.

Referencing Japan’s industrialised economy and growing reliance on electric technologies, Alake emphasised Nigeria’s strategic role in supplying processed critical minerals vital to Japan’s manufacturing and energy transition ambitions.

“Nigeria stands ready to meet Japan’s demand for value-added minerals,” Alake affirmed. “We invite JOGMEC to participate not only in the extraction of our mineral resources, but in the local processing of those minerals before export — in alignment with our national policy on in-country beneficiation.”

Dr. Alake highlighted Nigeria’s skilled labour force, attributing its high productivity to elevated literacy and education levels.

He assured Japanese stakeholders that the government is investing in transportation infrastructure — including rail, road, and inland waterways — to support industrial development.

“In terms of economies of scale, producing and processing the critical minerals you need in Nigeria is cheaper and more profitable as the production costs are lower,” Alake asserted.

On the question of energy availability, he explained that legislative reforms now allow industries to generate and manage their own power supply, adding that electricity will be dedicated to industrial applications to ensure consistency.

Additionally, he assured JOGMEC that Japanese investors would be eligible for import duty waivers on mining equipment and enjoy generous tax holidays under the government’s pro-investment regulatory regime.

According to the statement, the dialogue with JOGMEC followed earlier engagements between the Nigerian delegation and key Japanese trading giants — including Mitsubishi Corporation, Sumitomo Corporation, and Mitsui & Company — all of whom expressed preliminary interest in expanding their presence in Nigeria, pending JOGMEC’s due diligence and endorsement.

 To strengthen the institutional framework for collaboration, Dr. Alake introduced the Nigeria Solid Minerals Company (NSMC), represented by its CEO, Mr. Martins Imonitie.

 Alake said the NSMC, designed to function as a strategic investment vehicle, will take equity stakes in mining ventures and provide a trusted public-sector partnership platform.

 The meeting concluded with a shared recognition of the immense potential for a long-term strategic alliance, with both parties agreeing to prioritise the exchange of technical expertise and initiate direct engagement between JOGMEC and NSMC to fast-track project implementation. 

Earlier, Dr. Alake addressed a bilateral business conference hosted by the Nigerian Embassy in Tokyo, attended by Japanese investors and senior Nigerian government officials. 

In his remarks, he reiterated Nigeria’s readiness to absorb and optimise foreign direct investment, particularly within the solid minerals sector.