Nigeria Secures $800 Million Mining Investment Through Local Processing
- Nigeria secures $800 million in mining investments for 2024.
- NCDMB calls for local processing plans in mining licences.
- Policy reforms boost domestic capacity and prohibit importation.
- NCDMB focusing on the barite value chain critical for drilling.
- Supporting programmes like NOGAPS aim for enhanced local manufacturing.
Major Policy Shift Spurs Local Mining Investments
Nigerian mining investment has taken a major leap with over $800 million secured in 2024, thanks to a recent policy shift by the Nigerian Content Development and Monitoring Board (NCDMB). The new mandate requires that all mining licences include an outline for local processing plans, aiming to boost domestic capacity. Engr Felix Omatsola Ogbe, the Executive Secretary of NCDMB, presented these developments during the African Natural Resources and Energy Investment Summit held in Abuja, where he emphasised the transformative power of local content policies.
NCDMB Focuses on Barite Value Chain
Ogbe detailed that the NCDMB has dedicated over a decade to enhancing local capabilities, notably through their work in the barite value chain, vital for oil and gas drilling. The board has implemented restrictions on barite imports to encourage local processing, a move that reflects the effectiveness of their policy frameworks and stakeholder collaborations. He noted that today, barite importation is officially banned, a serious achievement attributed to targeted and sustained policy interventions.
Supportive Industrial Programmes Boost Local Capacity
Furthermore, Ogbe pointed out that the NCDMB’s strategies have led to job creation, value retention, and positioned Nigeria as a model for industrialisation across the continent. There are also similar initiatives expanding into sectors like steel and pipe manufacturing, with directives implemented for sourcing key materials locally. Supporting these reforms are broader programmes like the Nigerian Oil and Gas Industrial Parks (NOGAPS) and a $350 million Nigerian Content Intervention Fund in partnership with the Bank of Industry, both aimed at enhancing local manufacturing capacity.
In summary, Nigeria’s mining sector is seeing significant investments, primarily driven by the NCDMB’s local content policies. The agency’s strategic interventions are reshaping the industry, particularly in the barite value chain, banning imports, and fostering local production. These developments signify a critical shift towards more sustainable industrial practices in Nigeria.
