Nigeria assures investors, partners of enabling environment at Mining Indaba SA

*Dr. Dele Alake, Minister for Solid Minerals Development, underscores Nigeria’s participation in the Investing in African Mining Indaba in Cape Town, South Africa offers ‘strong guarantees’ to international lenders, leasing companies, equipment financiers, and technical service providers

Isola Moses | ConsumerConnect

The Nigerian Government has reassured foreign investors in the mining sector of a better deal to utilise the full benefits of the West African country status as a signatory to the Cape Town Convention on International Interests in Mobile Equipment to safeguard their investments.

ConsumerConnect gathered Dr. Dele Alake, Honourable Minister for Solid Minerals Development, stated this during the signing of an Engineering, Procurement, and Construction Management Memorandum of Understanding between Dukia Gold & Precious Metals Refining Company Limited and SGS Bateman, in South Africa.

The event held on the sidelines of the Investing in African Mining Indaba in Cape Town.

The Minister also said Nigeria’s participation in the convention provides strong guarantees to international lenders, leasing companies, equipment financiers, and technical service providers.

Alake also said: “It is important to note that Nigeria is a signatory to the Cape Town Convention on International Interests in Mobile Equipment.

“This provides a robust assurance framework for international financiers and service providers.

“It strengthens confidence that mining equipment and mobile assets deployed into Nigeria can enjoy internationally recognised protections — a key factor for project finance, asset leasing and structured equipment procurement.”

The new framework, also known as the Cape Town Treaty, the convention standardises transactions involving movable property by establishing international rules for the registration of sales contracts and security interests, including liens, leases and conditional sales agreements in the mining ecosystem.

It also outlines legal remedies in cases of default, including repossession and clarity in bankruptcy proceedings.

He further described the Dukia–SGS Bateman partnership as a significant milestone and indication of Nigeria’s growing relevance in the global mining value chain.

Alake reaffirmed that the mining sector remains central to the ongoing economic diversification agenda of the current administration.

Alake stated the Federal Government would continue to provide an enabling environment for credible investors and technical partners.

He as well highlighted reforms being introduced to unlock opportunities across the minerals value chain in Nigeria.

These mining reforms include enhanced regulatory clarity, streamlined licensing procedures, investor-friendly fiscal incentives and infrastructure prioritisation to support mineral development and beneficiation, stated Alake.

The Minister discloses other measures that are already delivering results, with the mining sector recording growth and increasing its contribution to Gross Domestic Product (GDP).

Assessing the overall impact of the forum, Alake described the Dukia-Arinola Mineral Resources Development Project, a special purpose vehicle of Dukia Gold & Precious Metals Refining Company Limited, as reflective of the future direction of mining in Nigeria.

It is noted the MoU has marked a significant milestone in the structured advancement of the Dukia–Arinola Mineral Resources Development Project, located in Ose and Owo Local Government Areas of Ondo State of Nigeria, within the Igarra Schist Belt (NGSA Owo Sheet 265).

This is with emphasis on local value addition, beneficiation and integrated mine-to-market development, said he.

The Minister further said: “It is especially encouraging that the project is structured around a scalable polymetallic processing strategy, designed to support phased growth from early-stage operations into large-scale industrial capacity over time.”

According to the Minister, the private-sector-led initiative aligns strongly with national development priorities in the sector.

Alake also stated that the framework would stimulate economic activity, create employment across skilled and semi-skilled categories, deepen local procurement, and contribute meaningfully to Nigeria’s aspiration of achieving a $1 trillion GDP economy by 2036.

Projects, including the Dukia-Arinola Polymetallic Mine-to-Market initiative will enhance Nigeria’s capacity to efficiently connect mineral production to markets — by road, rail, air, and sea — while strengthening the broader industrial ecosystem required for competitive mineral exports, said he.

The Minister averred: “I commend Dukia Gold and SGS Bateman for their commitment to this partnership and for their confidence in Nigeria’s mining future.

“I encourage all stakeholders to support the successful implementation of this project in line with best practices, safety standards, environmental responsibility, and shared prosperity.”

He, therefore, extended an open invitation to world-class mining contractors, engineering firms, equipment manufacturers, and outsourced mining service providers to engage with the project as it progresses into execution phases.

He noted that structured Requests for Proposals (RFPs) and Expressions of Interest (EOIs) are expected for various workstreams.

Alake told his audience: “We strongly encourage partnerships that include capable Nigerian firms to strengthen local content participation and domestic value retention.”

He further stressed Nigeria’s growing recognition as an emerging hub for critical and strategic minerals, with increasing emphasis on assured provenance, responsible sourcing, and traceability.

He stated: “Our ambition is clear: to grow mining beyond its historic role and position it as a strategic contributor to national GDP, foreign exchange earnings, and industrial competitiveness.”

In his remarks at the signing ceremony, Mr. Tunde Fagbemi, Chairman of Dukia Gold & Precious Metals Refining Company Limited, described the MoU with the Federal Government as a strategic step towards feasibility-driven execution and long-term mineral beneficiation.

Fagbemi said: “This MoU marks the beginning of a structured EPCM partnership to advance the Dukia–Arinola Project toward feasibility and disciplined execution.”

It was learnt the project spans approximately 184 km², structured across SSML-053234, ML-066732, and EL-038524 licences.

It has also progressed through extensive technical work, including geological mapping, geochemistry, geophysics, trenching, and diamond drilling, report noted.

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