Fostering Economic Ties: Nigeria and Japan Collaborate on Mining Investment at TICAD9

Nigeria and Japan are poised to forge a new economic partnership focused on mining, with high-level talks taking place at the 9th Tokyo International Conference on African Development (TICAD9) in Yokohama. The diplomatic engagement saw Nigeria’s Minister of Solid Minerals Development, Dr. Dele Alake, engage with a Japanese delegation led by Mr. Michio Daito, the President of the Japan Organisation for Metals and Energy Security (JOGMEC). The discussions followed earlier bilateral talks between President Bola Ahmed Tinubu and his Japanese counterpart, Prime Minister Shigeru Ishiba, underscoring the strategic importance of the collaboration.

During the meeting, Dr. Alake presented a strong case for Japanese investment, highlighting Nigeria’s vast mineral resources and the government’s commitment to creating an attractive business environment. He emphasized that in line with Nigeria’s new policy on local beneficiation, the government is seeking investors who will not only extract minerals but also invest in their local processing before export. “Nigeria stands ready to meet Japan’s demand for value-added minerals,” Dr. Alake affirmed. He also noted that with a skilled workforce and lower production costs, it is “cheaper and more profitable” to produce and process critical minerals in Nigeria.

Mr. Daito, while acknowledging Nigeria’s immense mineral wealth, requested a deeper insight into the country’s economic landscape. He sought more information on key investment factors, including power generation for industries, tax incentives, duty waivers, and the legal framework for foreign direct investment. Japanese mining companies, he explained, rely on JOGMEC’s assessments to make informed investment decisions abroad.

In response, Dr. Alake assured the Japanese delegation that the Tinubu administration’s economic reforms, including fuel subsidy removal and exchange rate stabilization, have improved the investment climate. He also highlighted ongoing government efforts to improve infrastructure, including road, rail, and inland waterways, to support industrial development. To provide an additional layer of confidence and a solid framework for partnership, the Minister introduced the Nigeria Solid Minerals Company (NSMC), represented by its CEO, Mr. Martins Imonitie. The NSMC is designed to take equity stakes in mining ventures, serving as a reliable public-sector partner for investors.

The talks with JOGMEC followed earlier engagements with key Japanese trading giants, including Mitsubishi Corporation, Sumitomo Corporation, and Mitsui & Company, all of whom expressed preliminary interest in Nigeria’s mining sector, pending JOGMEC’s support. This strategic alignment between the Nigerian delegation and Japanese institutions is seen as a crucial step towards transforming interest into concrete action.

The meeting concluded with a shared recognition of the potential for a long-term strategic alliance. Both parties agreed to prioritize the exchange of technical expertise and initiate direct engagement between JOGMEC and NSMC to fast-track project implementation. The collaboration is not just about attracting foreign capital; it is about building a sustainable partnership that will help Nigeria diversify its economy and position itself as a key player in the global mineral supply chain.