Nigeria Takes Action to Revitalize Mining Sector and Attract New Investments

Nigeria is currently undertaking significant efforts to revitalise its mining sector in order to attract new investors. In a recent announcement, the Minister of Mines disclosed that 924 dormant mining titles have been revoked, providing an opportunity for interested parties to apply for the affected licenses on a “first come, first served” basis.

The revoked titles include 528 exploration licenses, 20 mining leases, 101 quarry licenses, and 273 small-scale mining licenses. This action follows a previous revocation of over 1,600 mining titles for non-payment of statutory fees, indicating a comprehensive revamp of the sector.

According to Mines Minister Dele Alake, the decision to revoke the dormant mining titles aims to tackle “license racketeering”, a practice where individuals or companies obtain valuable mineral titles and then sell them to the highest bidder. Alake emphasized that this unethical practice not only misleads potential investors but also impedes genuine investment in the sector.

By cracking down on those who have exploited the mining licensing system for personal gain, Nigeria aims to discourage the creation of a black market for mineral licenses. The ultimate goal is to foster a more transparent and equitable environment for obtaining mining licenses, thereby boosting investment in the sector.

Recognizing the prolonged underdevelopment of its mining industry, Nigeria is introducing various incentives to attract investors, including tax waivers and full repatriation of profits. The country, renowned for its abundant mineral resources such as lithium, gold, and limestone, remains committed to revitalising its mining sector and harnessing the untapped potential of its natural wealth.

In an effort to ensure that the benefits of mining activities are maximised within the country, Nigeria has implemented stricter licensing regulations for foreign companies. Moving forward, mining licenses will be exclusively granted to companies that demonstrate a commitment to processing their minerals locally, aligning with the government’s objective of adding value within its borders.

As Nigeria embarks on this transformative journey to attract new investments and propel its mining sector towards prosperity, the global business community will undoubtedly be closely monitoring the developments. The country’s rich mineral reserves, combined with its determination to instil transparency and fairness in the licensing process, set the stage for a new era of growth and development in Nigeria’s mining industry.