Boosting Nigeria’s Mining Sector: Government to Offer Tax Waivers on Imported Equipment
The Federal Government of Nigeria has officially unveiled plans to grant tax waivers on imported equipment to be used in the mining sector, as part of a strategic effort to attract increased investments and bolster the nation’s mining industry. The announcement was delivered by the Minister of Solid Minerals Development, Dele Alake, during a gathering with his Saudi Arabian counterpart, Bandar AlKhorayef, at the esteemed Future Minerals Forum in Riyadh, Saudi Arabia.
The Minister underscored the government’s unwavering dedication to providing incentives for foreign investors, including tax waivers specifically targeted at imported equipment for the mining sector, in addition to ensuring the complete repatriation of profits by investors.
This initiative comes at a pivotal juncture when illicit mining activities continue to persist in certain regions of the nation, despite the prohibition and stringent regulations pledged to be enforced by governors in states such as Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe. Unauthorized mining by minors involving valuable commodities such as gold, sapphire, diamond, copper, lithium, aluminum, and iron has emerged as a pressing concern, with experts highlighting the imperative need for stricter regulations to combat these illicit activities.
The Minister underscored the significance of establishing strategic partnerships, emphasizing the abundant reserves of vital minerals in Nigeria and the imperative need for foreign investments in the exploration, extraction, processing, and local value addition of these resources. Furthermore, he emphasised the potential for collaboration with nations such as Saudi Arabia to optimise the utilisation of Nigeria’s natural resources for economic and infrastructural development.
In response, the Saudi Arabian counterpart conveyed support for Nigeria’s initiatives to diversify the economy, particularly within the mining sector, and extended a warm reception to collaboration with Nigeria in areas such as local value addition. Both nations reached a mutual consensus to establish a joint technical committee to facilitate collaboration in the mining sector and craft a viable action plan with defined timelines.
The Nigerian delegation at the Future Minerals Forum comprised senior officials from various agencies, including the Solid Minerals Development Fund, Mining Cadastral Office, and Nigeria Geological Survey Agency. On the other hand, the Kingdom of Saudi Arabia was represented by officials from the Ministry of Industry and Mineral Resources.
The government’s pledge to provide tax waivers on imported mining equipment and its endeavours to entice foreign investments represent positive strides towards the advancement of the mining sector. This measure not only aims to invigorate economic expansion, but also sets the stage for sustainable progress and job creation through the mining industry.
In conclusion, the declaration of tax waivers on mining equipment and the focus on collaboration with Saudi Arabia signify the government’s resolve to foster a conducive environment for investors in the mining sector. Undoubtedly, this constitutes a significant step in harnessing the full potential of Nigeria’s abundant mineral resources.
