Nigeria’s New Mineral Processing Policy: Boosting Local Value from Mining
Nigeria has recently made a significant announcement regarding its mining industry, marking a departure from the longstanding practice of exporting raw minerals. The government has announced that it will only issue new mining licenses to companies that are committed to processing extracted minerals within the country’s borders.
According to Segun Tomori, a spokesperson for Nigeria’s minister of Solid Minerals Development, the government is developing new guidelines that will require firms to demonstrate a feasible plan for local mineral processing in order to qualify for a mining license. This move aligns Nigeria with other African nations that are also prioritising the extraction of greater value from their mineral deposits.
In order to attract more investment in the mineral processing sector, Nigeria will be offering incentives to potential investors, such as tax waivers for importing mining equipment and the allowance of full repatriation of profits. However, these incentives will be contingent upon the investors’ commitment to setting up processing plants and contributing to the Nigerian economy.
Dele Alake, Nigeria’s minister of Solid Minerals Development, is leading the charge for a continent-wide effort to maximise local benefits from mineral exploration. Alake also chairs an African Mining Strategy Group that includes mining ministers from several other African countries.
In an effort to address the dominance of artisanal miners in the sector, Nigeria is seeking to regulate them by grouping them into cooperatives. This move is intended to bring more structure and organisation to the industry, which has historically been characterised by informal and unregulated practices.
Nigeria’s statistics bureau reported that in 2023, the country exported mainly tin ore and concentrates worth about $109 million, with China and Malaysia being the primary destinations. This figure underscores the potential financial gains that could be realized through local mineral processing.
The development of this new policy represents a proactive step towards maximising the value of Nigeria’s mineral resources. By shifting the focus to local processing, the government aims to create a more sustainable and economically beneficial mining industry.
In conclusion, Nigeria’s shift towards local mineral processing represents a significant change in the country’s mining policy. The move is part of a broader effort to extract greater value from its mineral resources, with the ultimate goal of bolstering the national economy and creating a more sustainable mining sector.
