Nigeria’s government has announced a new policy requiring mining companies to process minerals within the country to be eligible for new mining licenses. This represents a significant departure from Nigeria’s previous practice of exporting raw materials.
The government is currently crafting guidelines that will mandate firms to submit feasible plans for local mineral processing to qualify for these licenses. This move aligns Nigeria with other African nations that are focused on maximizing the value derived from their mineral reserves.
To attract more investors to the mineral processing sector, Nigeria is considering offering incentives such as tax exemptions for importing mining equipment and the option for full profit repatriation, as well as enhanced security measures. Minister of Solid Minerals Development, Dele Alake, is advocating for a continent-wide initiative to enhance local benefits from mineral exploration.
Nigeria, a leading energy producer in Africa, aims to catch up with Asian countries in capitalizing on its mineral wealth by addressing historical issues of poor incentives and neglect. One proposed government measure involves regulating artisanal miners, who currently dominate the sector, by organizing them into cooperatives.
In 2023, Nigeria primarily exported tin ore and concentrates valued at around $109 million to China and Malaysia, as reported by the country’s statistics bureau.
