Nigeria sets rule on mining licence

Nigeria has set a new rule over issuance of mining licence aimed at maximizing the value derived from the country’s mineral resources.

The country will only grant new mining licenses to companies that demonstrate a plan for processing minerals locally. This marks a departure from the previous policy of primarily exporting raw materials. To encourage investment in the mining sector, Nigeria is offering various incentives to investors. These include tax waivers for importing mining equipment, facilitating the process of obtaining electricity generation licenses, allowing full repatriation of profits, and enhancing security measures.

The government is emphasizing the importance of value addition as a condition for obtaining mining licenses. This approach aims to create job opportunities and benefit local communities by fostering industrialization and economic development.

Challenges

Nigeria’s Minister of Solid Minerals Development, Dele Alake, is advocating for a continent-wide initiative to maximize the local benefits of mineral exploration. This effort involves collaboration with other African countries to promote value addition and economic growth across the region.

Despite Nigeria’s abundant mineral resources, the mining sector has historically faced challenges such as poor incentives and neglect. However, the government is taking steps to address these issues by establishing state-owned corporations, enhancing security measures, and regulating artisanal miners.

The country has attracted foreign mining companies such as Thor Explorations, Xiang Hui International Mining, and African Natural Resources and Mines. These companies are involved in various mineral exploration and processing projects across the country, contributing to economic development and industrialization efforts.