Alake Woos Foreign Investors with Mining Incentives, Policies
The Minister of Solid Minerals Development, Dr Dele Alake has described Nigeria as Africa’s choice mining investment destination to Australian investors.
He said that was due to its incentives and policies designed to promote ease of business in the sector. Alake made this statement while virtually making his address at the Nigeria-Australia Investment Roundtable meeting.
This is contained in a statement by his Special Assistant on Media, Segun Tomori, on Thursday in Abuja.
Investors in the mining sector are granted a tax holiday of three to five years, deferred royalty payments, and exemption from customs and import duties for their equipment, among other benefits.
He urged the community of investors to consider Nigeria highly as their investment destination, especially with the commitment of President Bola Tinubu’s administration to removing impediments to the ease of doing business.
“Australians seeking to expand their mining portfolio to Africa should prioritise Nigeria in view of our positive investment-friendly policies and ongoing rapid transformation.
“Many of the heavy equipment imported for mining can be evaluated to qualify for tax waivers and exemption from import duties.
“Nigeria also has a favourable funds and capital repatriation policy that ensures investors’ funds are not trapped”, he said.
According to the minister, plans have reached an advanced stage for the establishment of a private sector-led Nigerian Solid Minerals Corporation.
He said that the corporation was poised for joint ventures with investors on critical minerals such as Lithium, Gold, Baryte, Lead, and Iron-ore.
The minister intimated the Australian investors on efforts to combat illegal mining and insecurity around mining areas, particularly through the establishment of the Mining Marshal Corps, which currently has 2,220 personnel.
He said that out of them, a 60-man rapid response squad has been specially trained and deployed across the 36 states of the federation and the Federal Capital Territory.
“Illegal mining is not just unlicensed mining. It covers licensed miners operating with invalid licenses or licensed miners operating outside their coordinates or mining minerals not approved in their licenses.
“The specialised mining marshals have in the little time of operations, discouraged illegal mining, brought relief to recognised miners.
“And are clamping down on those involved in nefarious activities around mining areas across the country”, he said.
On strengthening regulatory frameworks, the minister said that 1,633 titles were revoked in 2023 due to default in payment of annual service fees, and punitive measures have been extended to other categories of defaulters.
He explained that the action was aimed at tackling indiscriminate speculation, licence racketeering, and the menace of those who obtained licences over the years but have refused to move to the site.
On Wednesday, the Minister revoked 924 dormant licences spanning across exploration, mining leases and small scale licenses.
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