Nigeria bans dormant mining licences
Nigeria has revoked dormant mining title in the country in bid to curb license racketeering and discourage the creation of a black market for mineral licenses.
The affected titles include 528 exploration licences, 20 mining leases, 101 quarry licences, and 273 small-scale mining licences, Mines Minister Dele Alake said in a statement. The move has opened up room for new applications on a “first come, first served” basis, to reflect a broader effort to reform and revitalize its mining sector.
Challenges in the mining industry
This action is part of a series of reforms aimed at attracting investors to Nigeria’s underdeveloped mining industry. By offering incentives such as tax waivers and full repatriation of profits, Nigeria hopes to attract both domestic and foreign investment. Additionally, the country is tightening licensing rules to prioritize companies that process minerals locally, aiming to maximize the economic benefits derived from its vast mineral resources.
Mining in Nigeria has the potential to significantly contribute to the country’s economic development. The country’s mineral wealth includes resources like barite, bitumen, iron ore, lead, zinc, coal, limestone and gold. However, the sector faces numerous challenges and obstacles that have hindered its growth and potential. Its poor performance can be attributed to various factors including opaque extraction, insecurity and organised crime.
