Encouraging Foreign Investment in Nigeria’s Mining Sector
In a recent speech delivered at the Nigeria-Australia Investment Roundtable, Minister of Solid Minerals Development, Dele Alake, implored foreign businesses to consider Nigeria as a premier destination for mining investment. He underscored the country’s incentives and policies that facilitate ease of doing business in the mining sector, rendering it an appealing prospect for international investors.
Alake placed heavy emphasis on the initiatives to combat illegal mining and enhance security around mining areas. He particularly highlighted the establishment of the elite para-military force known as “Mining Marshals”, which consists of 2,220 personnel deployed to each of the 36 states of the federation and FCT, aimed at discouraging illegal mining and maintaining security in recognised mining areas across the country.
Furthermore, the Minister assured Australian investors that the plans for the establishment of the private sector-led Nigerian Solid Minerals Corporation are at an advanced stage. This corporation is set for Joint Ventures with investors on critical minerals such as Lithium, Gold, Baryte Lead, Iron-ore, and others. Alake expressed his anticipation of inviting them to the formal unveiling of Nigeria’s intervention in the international mining business very soon.
In his efforts to strengthen the regulatory frameworks, the Minister disclosed that the revocation of 1,633 titles for default in payment of annual service fees has taken place, and the government is currently scrutinising other categories of defaulters. This is aimed at addressing indiscriminate speculation, license racketeering, and the issue of those holding licenses but have not commenced operations at the site.
Alake urged investors to consider Nigeria as their prime investment destination, emphasizing the government’s commitment to offering incentives and eliminating barriers to the ease of doing business. Furthermore, he highlighted the favourable tax waivers, exemption from import duties, and capital repatriation policies that Nigeria offers to investors.
In addition to his address at the Nigeria-Australia Investment Roundtable, the Minister served as the Chairman of the African Minerals Strategy Group (AMSG) and delivered a keynote address at the inaugural Malawi Mining Investment Forum. He reiterated the group’s position on discouraging the export of raw, unprocessed minerals in Africa, emphasizing the necessity for value addition to bolster the economies of countries on the continent.
Alake urged other African countries to emulate Nigeria’s efforts in promoting policies that encourage value addition for maximum benefit to citizens and overall economic growth. He expressed confidence that investors who have the continent’s best interests at heart will embrace this policy for mutual benefit.
The Minister’s address to foreign investors and his advocacy for promoting value addition in African mining sectors demonstrate a strong commitment to fostering sustainable and mutually beneficial partnerships between Nigeria and the international community. His efforts to support the growth of the mining sector and attract foreign investment reflect Nigeria’s openness to collaboration and development.
