By Oscarline Onwuemenyi
In its bid to expand the solid mineral sector and harness it for sustainable development and growth, the Federal Government has embarked on far-reaching reforms in the sector. These reforms ranged from the creation of technical departments and agencies in the Ministry of Mines and Steel Development to the enactment of Nigeria Minerals and Mining Act 2007, and the development of the new Mining Regulations has ushered in a new regime of transparent mining and mineral titles administration in the country.

Over this period, government has invested heavily in the sector through comprehensive geo-scientific information gathering to the creation of enabling environment for investment opportunities in the sector.

Speaking last week at a workshop on Investment Opportunities in the Nigeria Mining Sector, in Abuja, the Minister of Mines and Steel Development, Arc. Mohammed Musa Sada, explained that the Federal government has emphasized the development of best practices in the solid mineral sector and has led by example in the area of efficient and proactive regulations to guide activities, as well as ensuring the security of mining titles through the formalization of the Mining Cadastre Office which will serve as the hub of mining licensing and securitization of titles.

According to Sada, “We have so far come to a stage where the guidelines, legislations and regulations are well in place. The next stage is for action proper; that is why we have decided to go into partnership with organizations and countries to bring in the kind of technology that we require to work in this sector.

We have had extended discussions with the Swedish government through their embassy in Nigeria. Swedish companies are some of the leading manufacturers of heavy mining equipment like drilling rigs, which is the one of the most important machinery needed in this country at this time to do further exploration works at the various mines.

“Currently, we have over 10,000 exploratory licenses out there, and each and every one of these licenses will require one type of rig or exploration machine or the other. Through this workshop, we aim to expose some Nigerian companies and other investors to the machines that they require for their activities.”

He explained that during the workshop also there will be discussions over how companies can acquire the heavy machinery and equipment needed for exploration in the sector. “Some of the equipment are very expensive and may be beyond the reach of some companies.

So, we will be looking at ways and means of making these equipment available including contracting, hire-purchase and renting to people who need them, so that we can begin to achieve in more concrete terms some of the exploratory licenses that we issued, and we will now start coming through with data and information that is required for effective mining activities,” Sada stated.

On the government side, the Minister noted that emphasis is being placed on enforcing the security of mining titles in order to boost the confidence of investors in the sector. According to him, “Government is doing everything it can to ensure that mining titles are secure, and we consider this as one of the most important aspects of the reform with the economy.

We make sure that when we give the miner his title, that title is secure and cannot be overturned unless there is excess breach of our regulations or, where necessary, if we have to enforce our ‘Use it or Lose it’ policy.”

Sada explained some of the incentives being provided by government to include exemption from customs and import duties in respect of plant, machinery and equipment, and accessories imported exclusively for mining operations.

“This administration has also approved an expatriate quota and resident permits in respect of approved expatriate personnel and personal remittance quota for expatriate personnel free from any tax imposed by any enactment for transfer of external currency out of Nigeria,” he said, adding that permission has also been given for remittance of foreign capital in the event of sale or liquidation of mining plant.

The government has also approved a three-year tax holiday which may be extended if the government is convinced of the expansion, efficiency and development of mining operations and the capacity building programme.

The Minister, therefore, urged investors from across the globe to explore all the viable investment opportunities that abound in the Nigerian mining and steel sector, especially against the backdrop of the economic mechanisms and reform being put in place in the industry to encourage the development of a robust private-sector led economy.

He added, “The government is committed to supporting any company or organization that is seriously engaged in the utilization of the abundant mineral resources in the country for economic production activities. Massive investment in the mining sector through private sector participation is key to rapid development of the sector; and the resultant effect is the much needed diversification of the economy which this administration is driving.”