Nigeria has revoked 924 dormant mining titles to attract investors. These include various types of mining and exploration licences. The revocation aims to combat ‘licence racketeering’ and make investment in the mining sector more appealing, supported by incentives such as tax waivers.
Nigeria has annulled 924 inactive mining titles to enhance its mining sector and attract new investors. This includes 528 exploration licences, 20 mining leases, 101 quarry licences, and 273 small-scale mining licences. Mines Minister Dele Alake stated that the licences will be available on a ‘first come, first served’ basis. This move follows the revocation of over 1,600 mining titles in November due to non-payment of fees, part of major reforms aimed at tackling “licence racketeering.” Alake noted this practice misleads potential investors and discourages legitimate investments. To revitalise the mining industry, Nigeria is offering incentives such as tax waivers and allows only companies that process minerals locally to obtain licences. Historically, the country has struggled to capitalise on its mineral wealth due to neglect and insufficient investment.
Nigeria, known for its rich mineral resources, including lithium, gold, and limestone, aims to develop its mining sector, which has been underexploited. Recent reforms focusing on revoking dormant mining titles and incentivising local processing are intended to enhance investment attractiveness and improve the administrative licensing process.
Revoking dormant mining titles is a strategic move by Nigeria to clean up its licensing system and attract new investments into its mining sector. By targeting licence racketeering, the government aims to create a fair investment landscape that encourages genuine mining ventures and promotes local mineral processing.
Original Source: www.theeastafrican.co.ke