Nigeria is to issue mining licences exclusively to companies that outline local processing plans, as part of new guidelines confirmed by a government spokesperson. This marks a departure from the longstanding policy of exporting raw materials, with the aim of enhancing the country’s mineral resource value.
Key Points:
– **New Licensing Condition**: Only firms with local processing strategies will receive licences.
– **Investment Incentives**: The government plans to provide tax waivers on mining equipment, streamline electricity generation licensing, and ensure profit repatriation.
– **Job Creation Focus**: Minister Dele Alake emphasised that adding value through local processing would create jobs and benefit local communities.
– **Support for Investors**: A state-owned minerals corporation will offer a 75% stake to investors, and a special security unit will target illegal mining activities.
Nigeria’s mining sector, contributing less than 1% of GDP, has been underdeveloped due to poor incentives. In 2022, Nigeria exported tin ore worth approximately 137.59 billion naira, primarily to China and Malaysia. The government aims to boost investment through the issuance of additional licences and focused guidelines to ensure local benefit from mineral exploration.