Solid Minerals Development Minister Kayode Fayemi has revealed that Nigeria is seeking investments of $7 billion in mining and steel over the next decade as it seeks to develop gold and iron ore extraction industries to diversify its oil-dependent economy.
Fayemi said one of the government’s priorities is to meet its annual steel demand of 6.8 million metric tons, from a current output of a third of that, produced mainly from scrap iron.
“About $5 billion will kick-start the mining sector,” he said. Nigeria will also require about $2 billion to revive Ajaokuta, a steel complex which was supposed to have an installed capacity of 5 million tons of steel a year.
“In two to five years, we want to have started production of iron ore, lead, zinc, bitumen, nickel, coal and gold at a serious scale,” he added.
Companies considering investments in Nigeria’s mining sector include Lagos-based Multiverse Mining & Exploration Plc and Kogi Iron Ltd., based in West Perth, Australia, he said.
Fayemi is billed to present a mining plan to President Muhammadu Buhari and later a Bill proposing the creation of a regulator for the sector.
“Currently, the ministry does everything: licensing, monitoring, inspection, and it shouldn’t be like that,” he said. He stressed that prospective investors have expressed concern about an uncertain regulatory environment.
According to him, an autonomous agency would be better positioned to focus on performance and efficiency of the sector. The new legislation will include incentives such as allowing full foreign ownership of mining projects in order to attract investments.