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Nigeria and the Kingdom of Saudi Arabia have resolved to strengthen their ties as the world undergoes a transition from fossil fuels to cleaner energy.
The decision was reached during a bilateral meeting held on the sidelines of the Future Minerals Forum (FMF) in Riyadh, Saudi Arabia. The delegations of both countries were led by the Minister of Solid Minerals Development, Dr. Dele Alake, and his Saudi Arabian counterpart, Bandar AlKhorayef.
Dr. Alake emphasized the crucial need for partnerships, citing the global energy transition's dependency on critical minerals, which he noted are abundant in Nigeria. He stated, "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 to explore and exploit the natural resources that we have."
The Minister stressed the importance of solid partnerships, especially with nations like Saudi Arabia, to maximize the utilization of Nigeria's natural resources for economic and infrastructural development. He expressed Nigeria's openness to investments, particularly in the mining sector, and acknowledged Saudi Arabia's historical affinity with Nigeria.
Dr. Alake advocated for investment in local value addition, emphasizing the need for processing solid minerals to establish factories in Nigeria. He highlighted the potential to generate employment and contribute to the overall economic growth. The Nigerian delegation expressed readiness to collaborate with their Saudi Arabian counterparts to fine-tune specifics and develop strategies for collaboration within a specified timeframe.
Addressing incentives for investment, Alake mentioned President Bola Tinubu's policies on repatriation of profits, tax waivers on imported equipment for the mining sector, and forthcoming security measures to secure mining areas in the country.
In response, Mr. AlKhorayef shared Saudi Arabia's commitment to diversifying the economy, with a focus on the mining sector. He echoed Nigeria's emphasis on local value addition and expressed a warm welcome to collaboration.
Both countries concluded the meeting by deciding to establish a joint technical committee. This committee will follow through on areas of partnership and create a workable action plan with timelines. The aim is to harness their comparative advantages for the development of the mining sector.
