Nigeria Announces Plan to Grant Mining Licenses Exclusively to Companies That Propose Local Processing Plans
Nigeria has announced plans to grant New mining licenses, exclusively to companies that present a plan for local mineral processing.
This move marks a significant shift from the country’s long-standing policy of exporting unprocessed raw materials.
According to a government spokesperson, Nigeria intends to optimize the value extracted from its solid mineral deposits. Despite being Africa’s foremost energy producer, Nigeria has traditionally failed to capitalize on its vast mineral wealth.
The mining sector’s contribution to the nation’s gross domestic product has consistently remained below 1%, largely due to insufficient incentives and neglect. To attract more investment into the mining industry, the government is issuing additional licences.
Also, to enhance the mining sector, Nigeria has formed a state-owned solid minerals corporation, providing investors with a 75% stake. Furthermore, a special security unit has been established to tackle illegal mining activities. The government is also working to regulate the artisanal miners who currently dominate the sector by organizing them into cooperatives.
Segun Tomori, a spokesperson for Nigeria’s minister of solid minerals development, stated that the government intends to grant tax waivers on mining equipment imports to stimulate further investments in the country.
It also intends to make it easier to secure electricity generation licences, as well as enable full repatriation of profits.
