Encouraging Foreign Investment in Nigeria’s Thriving Mining Sector
Minister Dele Alake of the Solid Minerals Development has presented a persuasive argument for foreign businesses to consider investing in Nigeria’s thriving mining sector. In his virtual address at the Nigeria-Australia Investment Roundtable, the minister highlighted the various incentives and policies designed to facilitate ease of doing business in the mining industry.
A standout initiative mentioned by Minister Alake was the establishment of an elite para-military force known as the “Mining Marshals.” Comprising a 60-man rapid response squad in each of the 36 states and FCT, this specialized force has played a pivotal role in combating illegal mining activities and ensuring the safety and security of legitimate mining operations across the country.
Alake emphasized that illegal mining encompasses a range of activities, including unlicensed mining, operating with invalid licenses, or mining minerals not approved in their licenses. The swift and effective action taken by the Mining Marshals has been crucial in discouraging illegal mining and clamping down on those engaging in nefarious activities in and around mining areas.
Furthermore, the minister revealed that plans for the establishment of the private sector-led Nigerian Solid Minerals Corporation are at an advanced stage. This corporation is poised for Joint Ventures with investors on critical minerals such as Lithium, Gold, Baryte Lead, Iron-ore, among others.
In a bid to strengthen regulatory frameworks, Minister Alake disclosed that the government has revoked over 1,600 titles for default in payment of annual service fees. Scrutiny has also been intensified to tackle indiscriminate speculation, license racketeering, and the longstanding issue of licensed individuals who have failed to commence operations.
Addressing potential investors from Australia, the minister emphasized Nigeria’s positive and investment-friendly policies, affirming the commitment of the government to provide incentives and facilitate a conducive environment for doing business in the mining sector. He also outlined various tax waivers, exemptions from import duties, and favourable policies for funds and capital repatriation, which make Nigeria an attractive investment destination.
In a separate event, Minister Alake, serving as the Chairman of the African Minerals Strategy Group (AMSG), stressed the importance of value addition in the mining industry during the first Malawi Mining Investment Forum. The AMSG is dedicated to discouraging the export of raw, unprocessed minerals in Africa, with a focus on promoting value addition for the benefit of local citizens and the economies of African countries.
Alake urged other African nations to emulate Nigeria’s approach by implementing policies that promote value addition and beneficiation of mineral resources. By making the submission of plans for post-extraction processing a mandatory criterion for the approval of mining licenses, Nigeria is pioneering measures to enhance compliance with value addition policies within the mining industry.
The minister’s call for African countries to unite in advocating for value addition is expected to resonate positively with international investors and further bolster Nigeria’s position as a promising investment destination in the mining sector.
