In a significant move to position Nigeria as a leader in critical metals, President Bola Ahmed Tinubu has instructed the Federal Ministry of Solid Minerals Development to issue mining licenses only if they are tied to local value addition. This directive aims to actively engage young Nigerians in economic activities, promote skill acquisition, and contribute to the overall development of the economy.
The President made this announcement during the opening session of the African Natural Resources & Energy Investment Summit, 2024, held at the State House Conference Centre in Abuja. Represented by Vice President Kashim Shettima, President Tinubu emphasized his administration’s commitment to creating an enabling business environment that encourages “value addition” on solid minerals before export.
Recognizing the losses incurred from exporting crude mineral commodities, President Tinubu expressed the need to change this narrative. By implementing the directive to tie mining licenses to local value addition, the government aims to ensure the active participation of youth in economic activities, skill acquisition, and increased foreign exchange earnings for the nation.
President Tinubu also highlighted his administration’s goal of making Nigeria a leader in critical metals. He commended the establishment of the African Minerals Strategy Group, with Nigeria serving as the first chairman, and emphasized the importance of setting new standards in the mining industry to ensure Africa’s equitable share in supplying the world with critical metals.
In addition to the focus on critical metals, President Tinubu acknowledged the pivotal role of natural gas in transitioning to cleaner and more sustainable energy systems. He emphasized Nigeria’s attractiveness to investment in the renewable energy sector, which has already attracted over $2 billion. The President expressed the commitment to continue this trajectory and encourage more private sector involvement, including the local manufacturing of solar panels and batteries.
While embracing renewable and cleaner energy sources, President Tinubu also emphasized the significance of the petroleum industry as a cornerstone of the nation’s economy. He recognized the continued importance of oil and gas and outlined strategic priorities in the sector, including attracting more investment, increasing oil production, improving infrastructure, tackling theft, and maintaining the highest environmental standards.
President Tinubu reiterated his administration’s commitment to responsible resource management, aiming to minimize ecological impact and maximize the benefits for the nation. The President’s vision aligns with the government’s broader strategy under the Renewed Hope Agenda to position Nigeria as a major player in the global minerals market.
Minister of Solid Minerals Development, Dr. Dele Alake, highlighted the government’s ongoing reforms to create a more attractive environment for investors. These reforms focus on enhancing transparency, regulatory clarity, and investor confidence. The comprehensive plan encompasses policy reforms, sustainable practices, infrastructure development, and human capital enhancement to unlock Nigeria’s vast mineral resources’ full potential.
The African Natural Resources & Energy Investment Summit brought together distinguished dignitaries, including Senator Mohammed Sani Musa, Minister of State for Environment Dr. Ishaq Salako, Minister of State for Steel Development Mr. Uba Maigari Ahmadu, and Permanent Secretary in the Ministry of Solid Minerals Development Dr. Mary Ogbe. Representatives from other African countries, including Sierra Leone, South Sudan, Malawi, Liberia, and Chad, also attended the summit. Additionally, representatives of several Nigerian state governors, including Abia, Ebonyi, Taraba, Kwara, Enugu, Nasarawa, and Akwa Ibom, were present.
The directive to tie mining licenses to local value addition demonstrates President Tinubu’s commitment to fostering economic growth, youth empowerment, and sustainable development in Nigeria’s mining sector. By prioritizing local value addition, Nigeria aims to establish itself as a critical metals leader and contribute significantly to Africa
