Tinubu Govt to Enforce Strict Regulations to Boost Local Mineral Processing

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Nigeria is set to enforce stricter regulations to discourage the export of raw minerals and encourage the export of processed products, aiming to stimulate job creation and enhance the value of its exports. According to Minister for Solid Minerals Dele Alake, the country seeks to ensure that mineral extraction is accompanied by local value addition, necessitating the establishment of processing facilities associated with the extracted minerals.

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As Africa’s largest crude producer looks to diversify its revenue sources amid declining oil production, it places its hopes on abundant reserves of minerals, including lithium, gold, bitumen, and iron ore. The country aims to follow the example of nations like Indonesia by climbing the commodities value chain and boosting employment. Past efforts by Nigerian governments to revitalize the mining and quarrying sector have fallen short, with the sector contributing only 0.2% to the GDP last year, far below the 3% target set a decade ago.

However, challenges persist for foreign companies considering refining minerals within Nigeria. These include an unreliable power supply, limited domestic demand, and the prevalence of illegal mining, especially in the insecure northern regions where armed groups engage in abductions and displacement, creating hurdles for legal mining operations.

In response, the administration of President Bola Tinubu has announced plans to implement new regulations to combat smuggling and improve industry oversight, including the revocation of licenses left unused for over 18 months. Last month, the Nigerian government also entered an agreement with Australian authorities to train locals in mining practices, anticipating enhanced regulation and more efficient exploration of the country’s solid minerals.

Finance Minister Wale Edun has expressed optimism about the significant interest from foreign investors, foreseeing tangible outcomes resulting from these initiatives. The ministry is working to attract foreign direct investment and ensure better regulation for sustainable development within the solid minerals industry.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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