Investing in Nigeria’s solid minerals should be more comprehensive than mere extraction, says Olaf Scholz

German Chancellor Olaf Scholz emphasized the need for investment in Nigeria’s solid mineral sector to extend beyond mere extraction and encompass value addition within the country of origin. Chancellor Scholz made these remarks during a joint press briefing alongside President Bola Tinubu following an extensive meeting with Nigeria’s President and his team.

He stressed the importance of economic development through the minerals present in Nigeria, urging investments that are both straightforward and beneficial to the country. Chancellor Scholz expressed concern about past practices that focused solely on extraction, emphasizing that a more comprehensive approach should be adopted to enable economic development within the countries where these minerals are sourced.

Nigeria has been actively working to boost the contribution of its mining industry to the Gross Domestic Product (GDP), which currently lags at around 1%. The Minister of Solid Minerals has indicated plans to establish a solid mineral corporation and require foreign investors to demonstrate their commitment to processing solid minerals as part of the licensing requirements.

In addition to mineral development, the discussion touched upon migration. Germany proposed a collaborative approach to address migration challenges, aiming to create a win-win situation for both Germany and Nigeria. Chancellor Scholz acknowledged the need for individuals with the right talents to come and work in Germany. He emphasized two key aspects: first, the need for a regular and well-regulated migration path for talented individuals to work in Germany. Second, he discussed the importance of agreements to facilitate the return of individuals who do not have the right to stay in Germany, emphasizing that this approach would benefit both countries.

Furthermore, Chancellor Scholz highlighted the willingness of German companies to invest in Nigerian infrastructure projects, particularly in the railway sector. He expressed a strong desire to enhance partnerships worldwide, indicating the potential for increased collaboration in the railway industry.

During the Government-to-Business Roundtable, President Tinubu reassured attendees of his administration’s understanding of the essential attributes of an ideal business environment. This understanding has driven a series of reforms and policy adjustments in Nigeria, aiming to create a more conducive and attractive business environment.

In summary, German Chancellor Olaf Scholz’s visit to Nigeria brought discussions on mineral sector investments, migration management, and infrastructure development. Both nations are looking to foster mutually beneficial relationships, ensuring that investments go beyond extraction in the mineral sector, and that migration is well-regulated and balanced. Additionally, opportunities for German investment in Nigeria’s railway infrastructure were explored, and President Tinubu emphasized Nigeria’s commitment to providing an ideal business environment.