The Nigerian government will only issue new mining licences to companies that submit a plan for local processing of minerals extracted in Nigeria. This initiative, announced by Segun Tomori, spokesperson for the Minister of Solid Minerals Development, stems from President Bola Tinubu’s efforts to enhance the economy by moving away from a decade-long policy of raw material exportation.
Key points of the new policy include:
– Licences will target companies that intend to set up processing plants locally.
– The government will provide incentives such as tax exemptions on mining equipment imports and streamlined electricity production licences.
– Full repatriation of profits for international companies will be permitted, alongside enhanced security measures.
Dele Alake, Minister for Solid Mineral Development, emphasised that creating added value is essential for licence acquisition to generate jobs and support local communities. Nigeria’s mining sector currently contributes less than 1% to the GDP, with a significant portion of minerals, like tin ore, exported mainly to China and Malaysia.