In an effort to push for more value extraction from solid minerals, Nigeria will only be granting new mining licenses to companies that have a clear plan for processing minerals locally, according to a government spokesperson. Apexnewsgh reports
This change signifies a departure from Nigeria’s previous policy of exporting raw materials, as African governments strive to gain more from their mineral deposits.
To attract investment, Nigeria will be providing incentives to investors such as tax waivers for importing mining equipment, easier processes for securing electricity generation licenses, full repatriation of profits, and enhanced security measures, as explained by Segun Tomori, spokesperson for Nigeria’s Minister of Solid Minerals Development.
In return, companies will need to showcase their plans for establishing a plant and outlining how they will add value to the Nigerian economy. While no specific timeline was provided for the finalization of these guidelines, Minister of Solid Minerals Development, Dele Alake, shared that making value addition a requirement for obtaining licenses will help create jobs and benefit local communities.
Nigeria, known as Africa’s top energy producer, has faced challenges in capitalizing on its abundant mineral resources due to inadequate incentives and neglect. With the underdeveloped mining sector contributing less than 1% to the country’s GDP, Nigeria aims to attract more investment by issuing additional licenses and employing strategies like the formation of a state-owned minerals corporation and a special security unit to combat illegal mining activities.
Last year, Nigeria predominantly exported tin ore and concentrates, totaling approximately 137.59 billion naira ($108.34 million), primarily to China and Malaysia. The government’s goal is to stimulate more investment in the sector by expanding the issuance of licenses and maximizing local benefits from mineral exploration efforts.
Source: Apexnewsgh.com/Ghana
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