Nigeria’s Appeal to Foreign Investors in the Mining Sector: A Lucrative Opportunity
The recently held Nigeria-Australia Investment Roundtable saw the Minister of Solid Minerals Development, Dr. Dele Alake, engaging in discussions with Australian investors regarding Nigeria’s potential as a prime investment destination for mining. In his discourse, Dr. Alake underscored the various incentives and policies that are in place to facilitate ease of doing business in the mining sector.
Highlighted during the meeting were the incentives offered to investors in the mining sector in Nigeria, which include a tax holiday of three to five years, deferred royalty payments, and exemption from customs and import duties for their equipment, among other benefits. These incentives reflect Nigeria’s commitment to creating an enabling environment for foreign investment.
Dr. Alake urged Australian investors to view Nigeria as their top investment destination, citing the positive investment-friendly policies and ongoing rapid transformation under the leadership of President Bola Tinubu. He also drew attention to Nigeria’s favourable funds and capital repatriation policy, ensuring that investors’ funds are not trapped.
Plans are underway for the establishment of a private sector-led Nigerian Solid Minerals Corporation. This corporation is set to engage in joint ventures with investors on critical minerals such as Lithium, Gold, Baryte, Lead, and Iron-ore, presenting abundant opportunities for collaboration.
The issue of illegal mining and insecurity around mining areas was addressed by the minister, particularly through the establishment of the Mining Marshal Corps, which currently consists of 2,220 personnel. This specialized force, including a 60-man rapid response squad deployed across the country, aims to crack down on illegal mining activities and provide security for recognized miners.
To bolster regulatory frameworks, the minister disclosed that 1,633 titles were revoked in 2023 due to default in payment of annual service fees. These measures are aimed at addressing indiscriminate speculation, license racketeering, and dormant licenses.
In conclusion, Dr. Dele Alake’s address to Australian investors presented Nigeria as an attractive and promising investment destination in the mining sector. With its wealth of natural resources and conducive investment policies, Nigeria offers a lucrative opportunity for foreign investors interested in expanding their mining portfolio to Africa.
The potential for joint ventures, the incentives offered, and the government’s commitment to creating a favorable investment climate make Nigeria a compelling choice for Australian investors eyeing the mining sector. As Nigeria continues its rapid transformation, the appeal to foreign investors in the mining sector is set to grow, further strengthening the partnership between Nigeria and Australia in the mining industry.
Source:
Martha Agas, NAN
