Will Nigeria's mineral resources portal revive FDI flows?
Precious metals prices are edging higher this week with gold climbing to a 3-week high on the back of a weaker U.S. dollar and softer inflation data. Meanwhile back home, Nigeria's ministry of mines has unveiled the Mineral resources portal for investors to have access to accurate information on Nigeria's mineral wealth.
Nere Emiko, Vice Chairman of Kian Smith Refinery joins CNBC Africa to discuss these stories and more.
Thu, 16 May 2024 15:04:45 GMT
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AI Generated Summary
- The unveiling of the Mineral Resources Portal by the Ministry of Mines aims to attract FDI by providing investors with easy access to accurate information on Nigeria's mineral wealth.
- Challenges in the gold industry include the lack of comprehensive data, regulatory constraints, and illegal mining activities, which hinder the sector's growth potential.
- Opportunities for growth lie in leveraging data, enhancing the investment climate, addressing illegal mining, and promoting responsible mining practices to unlock Nigeria's mineral wealth.
Nigeria, known for its vast mineral wealth, is making strides to attract foreign direct investment (FDI) through the unveiling of the Mineral Resources Portal by the Ministry of Mines. This portal aims to provide investors with easy access to accurate information about Nigeria's rich mineral deposits, streamlining the investment process and promoting transparency. In a recent interview with CNBC Africa, Nere Emiko, Vice Chairman of Kian Smith Refinery, shared insights on the potential impact of the portal on FDI flows into Nigeria. Emiko emphasized the significance of a centralized platform for investors to conduct due diligence, access geological data, maps, and security information, ultimately facilitating their investment decisions. The portal serves as a one-stop shop, eliminating the need for investors to navigate multiple sources of information and enhancing Nigeria's attractiveness as an investment destination. Emiko highlighted the importance of leveraging data to attract investors, proposing the integration of geological survey data into licensing processes to add value and increase revenue for the Nigerian Geological Survey Agency. Emiko acknowledged the challenges facing Nigeria's gold industry, particularly the lack of comprehensive data and the need to improve the narrative surrounding the sector. Emiko emphasized the importance of addressing regulatory constraints and enhancing the country's investment climate to stimulate growth in the gold industry. In terms of price expectations, Emiko expressed optimism regarding the upward trajectory of gold prices due to geopolitical tensions, a weaker US dollar, and increasing central bank demand. Emiko cited Goldman Sachs' revised price target of $2,700 per ounce by the end of the year, highlighting the potential for investors to capitalize on the current market conditions. Emiko also discussed the competition in Nigeria's refining sector, noting the significant demand for gold in the local market. Emiko highlighted the constraints faced by refineries in terms of financing and emphasized the need for banking support to scale refining capacity. Emiko underscored the importance of addressing illegal mining activities to enhance the formalization of the gold sector and improve export potential. Emiko urged regulatory authorities to adopt proactive measures to combat illegal mining and promote responsible mining practices in Nigeria. Despite the challenges, Emiko remains optimistic about the growth potential of Nigeria's gold industry, emphasizing the need for strategic investments, regulatory reforms, and enhanced collaboration between industry stakeholders. Emiko's insights shed light on the complex dynamics shaping Nigeria's mineral sector and underscore the opportunities for sustainable development and economic growth through responsible mineral resource management.
