Nigerian Government Implements New Policies to Boost Investment in Domestic Mining and Processing
The Nigerian government is implementing stricter licensing regulations on foreign mining companies to increase domestic processing and refining of metals such as lithium and zinc. During the Nigeria Mining Week event in Abuja, Mines Minister Dele Alake announced that companies will now need to submit business plans for “value addition” before being granted licenses.
The goal of this new policy is to incentivize foreign mining companies to invest in processing and refining operations within Nigeria, rather than solely focusing on extraction. Minister Alake emphasized the importance of this initiative in creating job opportunities within the country. He also highlighted the positive progress already underway, citing the example of Ganfeng Lithium Industry Ltd, a Chinese company that is establishing a lithium processing plant in Nasarawa state. This plant is expected to process 18,000 tons of lithium ore per day for the production of electric vehicle batteries.
Nigeria has historically underutilized its mining sector, with minimal contribution to the country’s GDP. Despite being rich in resources such as gold, limestone, and zinc, the mining industry has been overshadowed by the dominant oil sector. The government now aims to diversify the economy and elevate the role of mining in national development.
In an effort to attract and facilitate investments in the mining sector, the Nigerian government has also allocated significant funds for data collection and exploration. The National Integrated Mineral Exploration Project (NIMEP) has received over 15 billion naira (approximately $19.6 million) for mineral data generation. Minister Alake expressed optimism about the project’s initial findings, which have positioned Nigeria as a noteworthy lithium-rich country on the global stage.
Furthermore, Nigeria recently announced plans to establish a state-backed company that will work to attract investments for the extraction of various minerals including gold, coal, iron ore, baryte, lead, bitumen, and limestone. This signifies the government’s commitment to revitalizing and modernizing the mining industry to drive economic growth and diversification.
These strategic interventions reflect Nigeria’s ambition to overhaul its mining sector and harness its full potential for economic development. By encouraging investments in domestic processing and refining, the country aims to create a more sustainable and robust mining industry that aligns with its broader economic objectives.
Content by Camillus Eboh and Elisha Bala-Gbogbo
