A Memorandum of Understanding (MOU) on Solid Mineral Development was signed on Sunday, October 29 2023, by the Nigeria Solid Minerals Development Fund and GeoScan GmbH of Berlin, Germany. The agreement was formalized when German Chancellor Olaf Scholz visited Abuja.

Oliver Haeggberg, the CEO of GeoScan GmbH, and Fatima Shinkafi, the Executive Secretary, and CEO of SMDF, representing Nigeria, signed the Memorandum of Understanding.

During the German Chancellor’s official visit to Nigeria, Haeggberg was a member of the business delegation that accompanied him. At the Business to Government roundtable meeting, the German Chancellor met with President Tinubu and the Nigerian team.

Following President Bola Tinubu’s convened Federal Executive Council meeting this week at the Aso Rock Villa in Abuja, Minister of Solid Minerals Development, Dele Alake, revealed the details to State House media.

According to Alake, the MoU would promote the discovery, exploitation, and prudent use of the Federal Government’s earnings from solid minerals.

Alake called GeoScan GmBH a “remarkable advancement in the field of mineral exploration” because of its state-of-the-art equipment, which allows it to explore mineral resources up to 10,000 meters below the surface.

He underlined how economical this patented method is, stating that it finds subsurface reserves three times faster and at a cost that is eighty percent less than that of existing exploration techniques.

“Geodata collection is highly costly. This specific technology, he added, is excellent and eighty percent less expensive than global processes currently in use. It can locate resources underground three times faster.”

According to Alake, Nigeria has a major opportunity with Sunday’s Memorandum of Understanding (MoU) with GeoScan GmbH, given its enormous and untapped mineral terrain, estimated to be worth around $700 billion.

We make up around 0.02% of the world’s mining revenue. Despite our solid minerals deposit being estimated to be worth $700 billion, over 90% of Nigeria’s landmass still needs to be discovered.

“And because it’s a costly business, that highlights the importance of the historic achievement we made yesterday with GeoScan GmbH, which our President and the Chancellor of Germany also backed.”

“I’m glad to inform you that Nigeria has not made any kobo commitments. To allow us to investigate further all of the various mineral deposits we have, the corporation will set up shop here and relocate throughout the nation, he said.

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The minister also disclosed that Nigeria is rich in certain vital minerals that are necessary for the manufacturing of batteries, electric cars, and other cutting-edge technology.

According to him, these resources are essential to the worldwide movement toward clean, green energy, which aligns with the general tendency to combat climate change.

When asked about the benefits of the relationship for GmbH, Alake mentioned that the firm would receive a mining license to extract the quantity of minerals it found using its state-of-the-art equipment.

He called the agreement a win-win situation and said, “So we can then award them a mining license after they have identified further mineral deposits for us.

Whatever the case, we are now licensing children without providing them with any further benefits that this GeoScan would provide. When you consider it from all angles, it is a win-win situation.