Licenses Only Granted to Companies Committed to Local Processing
In a strategic shift aimed at boosting economic growth, Nigeria is set to overhaul its mining sector under the leadership of Tinubu, prioritizing companies with plans for local mineral processing when granting new mining licenses. This significant change, confirmed by a government spokesperson, marks a departure from the country’s previous approach of exporting raw materials. It reflects a broader trend across Africa as governments seek to extract more value from their mineral deposits.
The new guidelines, currently being developed, will offer incentives to investors, including tax waivers for importing mining equipment, simplified processes for securing electricity generation licenses, permission for full repatriation of profits, and enhanced security measures. In return, companies will be required to submit detailed plans for establishing processing plants and contributing to the Nigerian economy. This policy shift, according to Segun Tomori, a spokesperson for Nigeria’s Minister of Solid Minerals Development, aims to create jobs and support local communities.
Dele Alake, the Minister of Solid Minerals Development and a leading figure in this initiative, chairs an African mining strategy group comprising mining ministers from various African countries. This group advocates for a continent-wide effort to maximize local benefits from mineral exploration, emphasizing the importance of collaboration for sustainable development.
Nigeria’s mining sector, which has historically contributed less than 1% to the country’s GDP, holds immense potential for growth and prosperity. By encouraging local processing, the government aims to attract more investment and diversify the economy. Last year, Nigeria primarily exported tin ore and concentrates, highlighting the untapped potential that could be realized through local processing.
Foreign mining companies already operating in Nigeria, such as Thor Explorations, Xiang Hui International Mining, and African Natural Resources and Mines, stand to benefit from these new policies. These companies, involved in gold and iron ore exploration and processing, represent the forefront of Nigeria’s mining revolution.
In conclusion, Tinubu’s leadership in championing Nigeria’s mineral processing revolution underscores a new era of economic development and value creation. By leveraging its mineral resources more effectively, Nigeria is poised to lead Africa towards a brighter, more prosperous future.
