TheCable

Nigeria and the Kingdom of Saudi Arabia have resolved to strengthen collaboration for the development of solid minerals in the West African nation.

The partnership arrangement followed a meeting between both countries, Segun Tomori, media aide of Dele Alake, the minister of solid minerals development, said in a statement on Wednesday.

According to the statement, a bilateral meeting was held on the sidelines of the Future Minerals Forum (FMF) in Riyadh, between Alake and Bandar AlKhorayef, his Saudi Arabian counterpart. 

In his remarks, Alake emphasised the importance of forming partnerships for global energy transition, citing Nigeria’s abundant availability of critical minerals.

“We need a lot of investments in exploration, exploitation, extraction, processing, local value addition. We realize that we must look at regions outside of Africa to collaborate, further consolidate, and enhance our capacity in exploring and exploiting the natural resources that we have,” he said.

“For us to maximally utilize, exploit, and derive maximum revenue for our own economic and infrastructural development, we need to have a very solid partnership with nations like Saudi Arabia. 

“Saudi Arabia has always displayed good affinity to Nigeria, and it is historical.

“We have always been desirous of reciprocating this very positive gesture, and there is no better area to ensure that reciprocity than to ensure we consolidate on our partnerships in areas of economic development.” 

Alake said the country is open to investments in Nigeria, especially in the mining sector. 

He also advocated for investment in local value addition involving processing of solid minerals that will culminate in establishment of factories in Nigeria, leading to employment and “a multiplier effect on the economy”.  

The minister said the Nigerian team is prepared to collaborate with their Saudi Arabian counterpart to refine specifics and devise strategies for collaboration within a specified timeframe.

Alake highlighted President Tinubu’s policy on repatriation of profits by foreign investors, tax waivers for mining equipment, and a rejigged security architecture to encourage investment in Nigeria’s mining sector. 

In his response, AlKhorayef shared Nigeria’s stance on the principles of economic diversification, with a focus on the mining industry. 

He said Saudi Arabia also values local value addition and welcomes cooperation with Nigeria.

Thereafter, according to the statement, both countries agreed to establish a joint technical committee to collaborate on partnership and develop the mining sector, focusing on areas of comparative advantage.