Nigeria is planning to tighten its rules on the export of raw minerals and promote the shipment of processed products. The aim is to create more jobs and increase the value of the country’s exports. According to Dele Alake, the Minister for Solid Minerals, the government wants to ensure that minerals are not taken out of the country without adding value locally. This means that companies must establish factories to produce goods associated with the minerals they extract. Nigeria, as Africa’s largest crude producer, is looking to its mineral reserves as an alternative source of income as oil output declines. The country has significant deposits of lithium, gold, bitumen, and iron ore, and it aims to follow the example of countries like Indonesia in moving up the commodities value chain and boosting employment. However, previous attempts by Nigerian governments to revive the mining industry have been unsuccessful. The sector currently contributes just 0.2% to the country’s GDP. Encouraging foreign companies to refine minerals within Nigeria is challenging due to issues such as unreliable electricity supply, weak domestic demand, and illegal mining activities. Insecurity in northern Nigeria has also been a problem, with armed gangs carrying out abductions and killings. These gangs have displaced local communities, allowing for illegal mining to take place. To address these issues, the government plans to introduce new regulations to crack down on smuggling and improve oversight of the industry. It also intends to revoke licenses that are not used within 18 months. The government has recently signed an agreement with Australian authorities to provide training to locals in the mining industry, which is expected to lead to better regulation and more efficient exploration of Nigeria’s solid minerals. The Finance Minister, Wale Edun, has stated that there is significant interest from foreign direct investors in the solid minerals sector. Overall, Nigeria is taking steps to promote the processing of minerals within the country, with the goal of creating more jobs and increasing the value of its exports.
