The Federal Government has assured foreign investors in Nigeria’s solid minerals sector of stronger legal protections for their investments, citing the country’s status as a signatory to the Cape Town Convention on International Interests in Mobile Equipment.
The Minister of Solid Minerals Development, Dele Alake, gave the assurance during the signing of an Engineering, Procurement and Construction Management (EPCM) Memorandum of Understanding between Dukia Gold & Precious Metals Refining Company Limited and SGS Bateman.
The ceremony took place on the sidelines of the Investing in African Mining Indaba in Cape Town, South Africa.
Alake said Nigeria’s participation in the Convention provides a robust assurance framework for international lenders, leasing firms, equipment financiers, and technical service providers engaged in the country’s mining industry.
“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 recognized protections, a key factor for project finance, asset leasing, and structured equipment procurement,” he stated.
The Convention, also known as the Cape Town Treaty, establishes international standards for registering security interests in movable assets such as heavy equipment. It provides legal clarity in cases of default, including repossession rights and protections during insolvency proceedings safeguards considered critical for capital-intensive industries like mining.
Alake described the Dukia–Arinola Mineral Resources Development Project as a significant milestone in Nigeria’s mining sector and a strong signal of the country’s growing profile in the global minerals value chain.
The project, located in Ose and Owo Local Government Areas of Ondo State within the Igarra Schist Belt, spans approximately 184 square kilometres and covers SSML-053234, ML-066732, and EL-038524 licenses.
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According to the Minister, the initiative prioritizes local value addition and beneficiation through an integrated mine-to-market strategy rather than the export of raw minerals.
“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,” he said.
He added that the Federal Government recognizes the strategic importance of the initiative and will continue to provide an enabling environment for credible investors and technical partners.
Alake reiterated that the mining sector remains central to Nigeria’s economic diversification agenda, particularly as the country targets a $1 trillion GDP by 2036.
He outlined reforms introduced by the Federal Government to unlock opportunities across the minerals value chain, including improved regulatory clarity, streamlined licensing processes, investor-friendly fiscal incentives, and infrastructure prioritization to support beneficiation.
“The sector has been recording growth, with mining contributing more significantly to GDP, reinforcing the momentum of the reforms and our commitment to sustained sector expansion,” the Minister noted.
He said projects such as the Dukia–Arinola initiative are expected to stimulate economic activity, create employment across skilled and semi-skilled categories, deepen local procurement, and strengthen Nigeria’s industrial base.
Alake extended an invitation to world-class mining contractors, engineering firms, equipment manufacturers, and outsourced mining service providers to participate as the project moves into execution phases. Structured Requests for Proposals and Expressions of Interest are expected for various workstreams.
“We strongly encourage partnerships that include capable Nigerian firms to strengthen local content participation and domestic value retention,” he said.
He also emphasised Nigeria’s growing recognition as an emerging hub for critical and strategic minerals, with increasing focus on responsible sourcing, traceability, and assured provenance.
“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,” Alake affirmed.
Speaking at the event, Chairman of Dukia Gold, Mr. Tunde Fagbemi, described the MoU as a strategic step toward feasibility-driven execution and long-term mineral beneficiation.
“This MoU marks the beginning of a structured EPCM partnership to advance the Dukia–Arinola Project toward feasibility and disciplined execution,” he said.
The project has already undergone extensive technical work, including geological mapping, geochemical and geophysical surveys, trenching, and diamond drilling.
SGS Bateman, a globally recognized engineering and mineral processing solutions provider, is expected to bring technical expertise spanning process design, procurement strategy, project controls, construction management, and commissioning support.
With the signing of the MoU and renewed assurances on investor protection, stakeholders say Nigeria is positioning its mining sector for deeper foreign participation and long-term industrial growth.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
