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ENR ADVISORY INTERVIEW: “Nigeria’s burgeoning mining industry presents enormous potential for economic diversification and sustainable growth”

Exclusive interview with Jumoke Fajemirokun, a partner in ENR Advisory, who are bronze sponsors at the upcoming Nigeria Mining Week.

Welcome back to Nigeria Mining Week 2024! Let’s start with some background about ENR Advisory. What is the firms’s unique offering?

ENR Advisory is a Lagos-based law firm specializing in providing legal services across the energy and natural resources sectors – oil, gas, mining, power, and renewables. What differentiates us is our deep sector-specific expertise and comprehensive understanding of the complexities within these sectors. Our lawyers have not only advised clients on a wide range of transactions but has also contributed to shaping policy and legislation in Nigeria’s mining sector, making us uniquely equipped to guide clients through regulatory challenges and strategic decisions.

Our approach is highly tailored—we offer nuanced legal support to investors and operators at every stage of their projects, from acquiring mineral rights to navigating financing, exploration, and development, as well as managing contractual and compliance matters. We are committed to helping our clients achieve their business objectives while effectively managing risk and navigating Nigeria’s regulatory landscape.

How excited are you about Nigeria’s burgeoning mining industry, and why?

I am very excited about Nigeria’s burgeoning mining industry, because it presents enormous potential for economic diversification and sustainable growth. What makes this moment particularly interesting is the immense potential for minerals like lithium, graphite, and nickel—resources that are vital for the global energy transition. This has brought the spotlight back on Nigeria and we have been seeing more interest by investors looking to play in this space. With the rising global demand for these minerals, Nigeria has a unique opportunity to position itself as a key supplier in this emerging market.

Another aspect that excites me is the growing involvement of local investors in Nigeria’s mining industry. Unlike in the past, we are beginning to see local players engaging in more serious and structured mining activities. This shift is fostering the development of local capacity to undertake exploration projects that align with international standards.

While foreign investors remain essential for injecting capital and expertise, the increasing participation of local investors is a promising sign of the industry’s maturation. It demonstrates a growing confidence in the sector and lays the groundwork for a more sustainable, homegrown mining ecosystem that can drive long-term economic growth.

Where are you focusing for future growth?

Our focus is on supporting both established operators and new entrants in Nigeria’s mining sector, helping them navigate regulatory complexities and manage their contractual, project, and regulatory risks effectively to meet their business goals. We are focussed on providing support to operators across the value chain.

The theme of this year’s conference is Inside-Out: Building the Mining Sector to be the Cornerstone of Nigeria’s Economy. What steps should the Nigerian government take to attract investment and exploitation of the country’s mineral wealth?

Nigeria’s mining industry faces several challenges that must be addressed for the sector to develop at a desirable pace. One critical step the government must take is improving the availability and accessibility of high-quality geological data. While significant progress has been made through initiatives like the National Integrated Mineral Exploration Project (NIMEP), more effort is needed to ensure that this data is easily accessible to investors, as it plays a vital role in de-risking mining prospects.

Additionally, investment in critical infrastructure—such as roads, rail, and power—to support mining operations should be a top priority. Leveraging public-private partnerships (PPPs) to fund and develop such infrastructure could provide a sustainable pathway to addressing these gaps.

The government should also revisit the existing incentives framework for mining to assess whether it is enough to encourage investment into the sector. This includes evaluating fiscal and non-fiscal incentives to ensure they are competitive and aligned with investor expectations.

Stakeholder consultation is another crucial step, as it ensures that policies, regulations, and initiatives align with the needs of all stakeholders, including mining companies, local communities, and investors.

Furthermore, enhancing security in resource-rich but volatile areas is essential to creating a safe environment for operations. Finally, fostering collaboration between the federal and state governments will be critical to address regulatory risk and build investor confidence in the sector.

You are bronze sponsors of the event. What has been your experience of Nigeria Mining Week over the years?

The Nigeria Mining Week has grown significantly over the years to become the foremost platform for high-level engagement, networking, and deal-making in the mining sector. From the connections made to the exhibits, conferences, and technical sessions, each edition provides invaluable insights and opportunities. I always leave the event feeling enriched with new knowledge, stronger industry connections, and a renewed sense of optimism for the sector’s growth.

Anything you would like to add?

We are delighted to partner with Nigeria Mining Week once again as bronze sponsors. This event provides an incredible platform for meaningful interactions with delegates, insightful discussions, and the opportunity to forge mutually beneficial and long-term business relationships.We look forward to contributing to this year’s conference and supporting the growth of Nigeria’s mining sector.

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