Alake Advocates Regional Energy Hubs to Drive Africa’s Mining Industry

Sector Attracts Over $2.6bn in Foreign Direct Investment Within Two Years

Nigeria’s Minister of Solid Minerals Development, Dele Alake, has called on the United States and African nations to prioritise the establishment of regional energy hubs as a strategic step toward accelerating mining industrialisation across the continent and strengthening the supply chain for critical minerals needed for the global energy transition.

Alake made the call while speaking at a high-level panel titled “Critical Minerals in Africa: Meeting Global Demand” during the ongoing Powering Africa Summit in Washington, D.C., United States.

In a statement issued by his Special Assistant on Media, Segun Tomori, the minister stressed that sustainable partnerships between Africa and the global community remain the fastest pathway to meeting the rising demand for critical minerals.

Alake advocated the creation of regional industrial corridors similar to the Lobito Corridor, noting that such infrastructure networks could unlock Africa’s vast mineral resources while boosting cross-border economic integration.

He cited the Lagos–Abidjan Corridor—linking Nigeria, Benin, Togo, Ghana and Côte d’Ivoire—as well as the Walvis Bay Corridor connecting parts of Southern and Central Africa to global markets as examples of regional belts capable of catalysing large-scale mining and industrial activities.

According to him, such corridors would stimulate infrastructure development, expand access to energy and promote regional integration across the continent.

“The development of nuclear power in one West African country, for instance, can serve an entire industrial corridor. Once the energy backbone is in place, local beneficiation, technology transfer, manufacturing and cross-border industrialisation will naturally follow,” Alake said.

He added that the development of three to five such corridors across Africa could significantly accelerate industrialisation on the continent, creating mutual economic benefits for both Africa and Western partners.

Reforms Driving Investment

Highlighting reforms under the administration of Bola Ahmed Tinubu, Alake said Nigeria has strengthened governance structures in the mining sector through improved regulatory frameworks, digitisation of licensing processes and reforms aimed at enhancing the ease of doing business.

According to him, policy changes implemented over the past two and a half years now guarantee secure tenure for mineral title holders, providing the long-term stability required to attract investment.

He also disclosed that the government is expanding the generation of scientifically verified and internationally certified geological data to enable informed investment decisions by both local and international investors.

Crackdown on Illegal Mining

On security concerns in the sector, the minister acknowledged existing challenges but pointed to progress made through the creation of the Mining Marshals to tackle illegal mining activities.

Alake revealed that more than 350 suspected illegal miners, including foreign nationals, have been arrested within the past year, with over 150 currently facing prosecution.

According to him, the enforcement drive has sent a strong signal that Nigeria is determined to sanitise the sector and ensure compliance with mining regulations.

$2.6 Billion FDI Recorded

Reaffirming Nigeria’s openness to legitimate investors, Alake said the government has introduced several incentives, including tax waivers on imported mining equipment and the full repatriation of profits after due payment of taxes and royalties.

“We have successfully de-risked and sanitised the mining environment, making it conducive for Foreign Direct Investment,” he said. “Within the last two and a half years, we have attracted over $2.6 billion in FDI into the sector.”

Call for Stronger Partnerships

In her remarks, Sarah Whitten, Senior Vice President and Global Head of Origination at the U.S. Export-Import Bank, stressed that successful mining projects depend on strong collaborations backed by sustained commitment from governments.

She noted that American financial institutions are prepared to support critical mineral projects by mobilising private sector capital.

“American banks are ready to support projects, but our role is to catalyse and unlock private sector capital. If we succeed in unlocking that capital, then we have fulfilled our mandate,” she said.

Other participants at the panel included Sekou Camara, Guinea’s Minister of Energy; Carl Tricoli, Managing Partner at Denham Capital; Ben Kinkaid, CEO of ReElement Technologies Africa; Heliana Matza, Chief Strategic Development Officer at TechMet; and Jahan Khandokar, Partner at McDermott Will & Schulte.