FG Plans Waiver To Attract Investors Into Solid Minerals Sector

…. Extends Ultimatum For Illegal Miners By Another 30 Days

The Minister of Solid Minerals Development Dele Alake, has said the government would provide incentives to attract more investors into the mining sector

This is as the minister issued another 30-day ultimatum for illegal miners to get registered in certified mining corporations in the country.

He said this on Wednesday during an interview on TVC.

Recall that the initial 30 days ultimatum ended in September.

However, Alake said “That 30-day ultimatum, was not meant to be a positive measure, it’s actually to help the illegal miners to formalize so that they can become bankable and to advance their trade or their operations.

“We received pleas from various stakeholders for more time to enable them to formalize themselves into cooperatives. So, with regards to that, we have considered all of the pleas and the pragmatism involved in the dynamics of the whole sector, and we are now extending that ultimatum by another 30 days, after which they will be doing proof of any infringement of the regulation.”

The minister said the big players in the industry will globalize the solid mineral sector of Nigeria, and this would mean a lot of employment creation, and wealth creation.

“One of the proposals that we are giving to the foreign investors, even local investors, is a lot of waivers. For instance, the equipment to explore solid-mineral is very, very expensive and these investors have to bring this expensive equipment into Nigeria.

“So, we are throwing waivers, the percentage of custom duties and levies and all of that, to encourage, more substantial foreign investors coming into the sector,” Alake said.

He added that during the United Nations General Assembly (UNGA) investors showed support, adding however, that they expressed the fear of insecurity which has been a lingering problem downplaying the development of the sector.

“There’s no investor that wants to raise money, you know, or have money in an unstable environment, in a chaotic situation. Once we put in the regulatory framework, through the establishment of the Special Civil Rights Tax Force, we would infuse a lot of technology that will guide the management of the operation of the industry,” he added.

Speaking on state governors banning mineral exploration and exploitation in their states, Alake said it is not their purview to make policy pronouncements on minerals in their states or any part of Nigeria, because solid minerals belong in the exclusive legislative list of the Constitution.

He added, “So, I’m saying categorically that no state has the constitutional authority to make policy pronouncements on the minerals in their states or any part of Nigeria. That is the exclusive reserve of the federal government through the Ministry of Solid Minerals.

“If any state has any issues with the operators or with the exploration of minerals, it can make submissions to the federal government through the Ministry of Solid Minerals, as such cases will be looked into.”