Home » Nigeria Partners with German Firm to Unlock $700b Mineral Wealth

Nigeria Partners with German Firm to Unlock $700b Mineral Wealth

The MOU aims to promote the development and effective utilization of Nigeria’s solid mineral sector using cutting-edge technology

by Motoni Olodun

Nigeria has taken a major step towards developing its solid mineral sector by signing a Memorandum of Understanding (MoU) with a German mining technology company, GEO-SCAN.

The MoU, which was announced by the Minister of Solid Minerals Development, Dele Alake, on Monday, aims to explore the vast mineral resources that lie beneath the Nigerian soil.

According to Alake, Nigeria’s mineral resources are conservatively estimated at $700b, constituting about 0.02 percent of global mining. He said that the MoU would enable Nigeria to access GEO-SCAN’s top-notch technology, which is 80 percent cheaper and three times faster than current processes worldwide.

He added that the MoU was executed under the government’s Solid Mineral Development Plan (SMDF), which seeks to promote the development, effective utilization, and responsible allocation of the generated income from the solid mineral sector.

The MoU comes when Nigeria is diversifying its economy away from oil dependence and seeking alternative sources of revenue and foreign exchange. The solid mineral sector has been identified as one of the key sectors that can boost Nigeria’s economic growth and create jobs for its teeming population.

The MoU also aligns with the German government’s commitment to support Nigeria’s development agenda, as expressed by the German Chancellor, Olaf Scholz, who is visiting Nigerian President Bola Tinubu. Scholz said that Germany was ready to cooperate with Nigeria on various areas of mutual interest, including trade, investment, security, and climate change.

The MoU with GEO-SCAN is expected to provide Nigeria with accurate data on the quantity and quality of its mineral resources, which will attract more investors and enhance the sector’s competitiveness. Alake said that Nigeria would grant mining licenses to GEO-SCAN after they discover more mineral deposits for the country.

He also stated that the MoU was executed at no cost to the Nigerian government, as GEO-SCAN’s objective was to provide Nigeria with its cutting-edge technology, which would have otherwise cost a fortune.

The Minister expressed optimism that the MoU would usher in a new era of prosperity for Nigeria and its people. He said the solid mineral sector had enormous potential to contribute to Nigeria’s socio-economic development and environmental sustainability.

He noted that the demand for minerals increased globally due to the transition to electric vehicles, batteries, electronic components, and various technological equipment. He said Nigeria was poised to take advantage of this opportunity and become a major player in the global mining industry.

Source: Nairametrics

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