By Gabriel Ewepu, Abuja

As the world shifts from fossil fuels to cleaner energy in a bid to reduce the impacts of climate change, Nigeria and the Kingdom of Saudi Arabia move to develop solid minerals through partnership.

Speaking on the essence of the partnership between Nigeria and Saudi Arabia, the Minister of Solid Minerals Development, Dr Dele Alake, met with his Saudi Arabian counterpart, Bandar AlKhorayef, on the sidelines of the Future Minerals Forum (FMF), held in Riyadh, Saudi Arabia, as contained in a statement signed by his Special Assistant on Media, Segun Tomori.

According to the statement, Alake harped on the need to forge partnerships, emphasising that the global energy transition is contingent on critical minerals, which he stated exist in abundance in Nigeria.

He said, “We need a lot of investments in exploration, exploitation, extraction, processing, and local value addition. We realise 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.

“For us to maximally utilise, exploit, and derive maximum revenue for our own economic and infrastructural development, we need to have a very solid partnership with nations like Saudi Arabia.

“Saudi Arabia has always displayed a good affinity for Nigeria, and it is historical. We have always been desirous of reciprocating this very positive gesture, and there is no better area to ensure that reciprocity than to ensure we consolidate our partnerships in areas of economic development. We are willing and open to investments in Nigeria, especially in the mining sector.”

The statement further reads, “Alake made a case for investment in local value addition involving the processing of solid minerals that will culminate in the production and establishment of factories in Nigeria, which he noted will generate employment and have a multiplier effect on the economy.

“He emphasised the readiness of the Nigerian team to work with their Saudi Arabian counterpart to fine-tune specifics and map out strategies to concretize areas of collaboration within a specified time frame.

“Throwing light on incentives for investment, Alake cited the policy of President Bola Tinubu on repatriation of profits by foreign investors, tax waivers on imported equipment specifically directed at the mining sector, and a rejigged security architecture, which he hinted will soon come on stream to effectively secure mining areas in the country.

“In his response, Mr AlKhorayef shared the position of Nigeria on the fundamentals of diversifying the economy, with emphasis on the mining sector. He revealed that Saudi Arabia also places a premium on local value addition while welcoming collaboration with Nigeria.”

Meanwhile, according to the statement, both countries thereafter resolved to set up a joint technical committee to follow through in areas of partnership coupled with a workable action plan, guided by timelines, to harness areas of comparative advantage for mining sector development.