In an effort to spur growth in the mining sector and attract foreign investments, the Nigerian government is set to grant tax waivers on imported equipment, according to the Minister of Solid Minerals Development, Dele Alake.
The announcement was made during a meeting with the Saudi Arabian Minister of Industry and Mineral Resources, Bandar AlKhorayef, on the sidelines of the Future Minerals Forum in Riyadh.
The minister emphasized the government’s commitment to offering tax incentives specifically aimed at the mining industry and ensuring full repatriation of profits for investors.
This move comes at a crucial time as the nation grapples with the issue of illegal mining, particularly in the North East region, despite stringent regulations and a ban on such activities.
Illegal mining, often involving underage individuals, has been a persistent challenge, with precious stones like gold, sapphire, diamond, copper, lithium, aluminum, and iron being unlawfully extracted. Experts highlight the need for robust regulations to address these activities, connecting them to issues of insecurity and stressing the importance of enforcing local consent provisions in Nigeria’s mining policy.
President Bola Tinubu’s initiatives were also mentioned in the statement, outlining policies on repatriation of profits and tax waivers on imported mining equipment. The government aims to bolster security in mining areas, with a revamped security architecture expected to be implemented soon.
Dr. Alake underscored the significance of forging partnerships, especially in light of the global energy transition that relies on critical minerals abundantly available in Nigeria. He expressed openness to collaboration with nations like Saudi Arabia and highlighted the need for investments in exploration, extraction, processing, and local value addition.
The minister emphasized the readiness of the Nigerian team to collaborate with Saudi Arabia, particularly in the mining sector, and encouraged investment in local value addition. This involves processing solid minerals within Nigeria, leading to the establishment of factories that would generate employment and contribute to economic growth.
In response, Mr. AlKhorayef echoed Nigeria’s commitment to diversifying its economy, placing importance on local value addition. Both countries agreed to establish a joint technical committee to oversee collaboration in the mining sector, with a defined action plan and timelines.
The Nigerian delegation included key figures such as Hajia Fatima Shinkafi, Executive Secretary of the Solid Minerals Development Fund, and Dr. Obadiah Nkom, Director-General of the Mining Cadastral Office.
Representing the Kingdom of Saudi Arabia were the Minister of Industry and Mineral Resources, HE Bandar AlKhorayef, and Vice-Minister, Mining Affairs, Engr. Khaled AlMudifer, along with other government officials.
