Nigeria is introducing new guidelines requiring mining companies to process minerals locally for licensing. The government will offer incentives to attract investment and aims to drive job creation while increasing the sector’s contribution to GDP. Current policy reflects a significant shift from prior practices of raw material exports.
Nigeria plans to only issue new mining licences to companies that demonstrate local mineral processing plans, marking a pivotal change from its long-standing practice of exporting unprocessed resources. This move aims to enhance local value extraction and economic benefits. To stimulate investment, the government will introduce incentives like tax exemptions for mining equipment imports, simplified electricity generation licensing, full repatriation of profits, and improved security measures. Segun Tomori, spokesperson for the minister of solid minerals development, noted the necessity of reviewing company plans for local plant establishment to ensure economic value addition. Minister Dele Alake underscored that value addition is crucial for job creation and community support, aiming for a continent-wide approach to enhance local benefits from mining. Nigeria’s mining sector currently contributes less than 1% to GDP, with exports mostly comprising tin ore. Recent government actions include creating a state-owned minerals corporation and regulating artisanal miners.
The article addresses Nigeria’s evolving mining policies aimed at transforming the sector by prioritising local mineral processing over raw material exports. As Africa’s leading energy producer, Nigeria has faced challenges in capitalising on its abundant mineral resources, leading to minimal economic impact from the mining industry. The government’s recent initiatives signal a sustained effort to attract investment while ensuring it benefits local communities.
Nigeria’s new regulatory framework for mining seeks to promote local processing of minerals, incentivise investment through tax breaks and profit repatriation, and create jobs. This strategy is part of a broader goal to enhance the mining sector’s contribution to the national economy and benefit local communities.
Original Source: www.mining.com