Embrace Exploration in Nigeria

I won't be wrong if I say mining in Nigeria is one of the main businesses in the country which leads to high income and opportunities. The potential growth as it stands can create more jobs, increase government revenue, diversify the economy, provide raw materials, and stand as a foundation for modern living, innovation, and engineering achievements.

Nigeria! A country filled with untapped natural resources in the mining sector got into the heart of Africa when it was discovered her urge deposit in Limestone, Iron Ore, Gold, Coal, Barites and other precious metals like Lithium, Cobalt, Cassiterite, Tantalite, Coltan, Lead, Copper, Wolframite/Scheelite, Californium - the most expensive metal ever known discovered in the northern part of the country and other industrial minerals. Not forgetting the likes of Tourmaline, Aquamarine, emerald, garnet, ruby, sapphire, topaz, tourmaline, zircon, etc. All these present good and viable investments. At least, as at the last count over 500 minerals has been discovered by MMSD.

Mining in Nigeria, is authoritatively handled by MMSD (Ministry of Mines and Steel Development). The affair is handled by a Minister of the Federal Republic called the Minister of Mines, and the allocation of the mines portions is done by the Mining Cadastre.

Just like any other sector, the long painful, and discontinued history of mining in Nigeria can be traced back to the era when the oil boom suddenly displaces the exportation initially being carried out on the mineral exploited. This era brought abruptly an erratic exploitation of minerals in the sector.

For instance, it has been discovered that over 5 billion metric tonnes of iron ore are present across the nation. Likewise, gold is approximately 1 million ounces, 42 billion Metric Tonnes of Bitumen, 3 billion Metric Tonnes of Kaoline, and over 3 billion Metric Tonnes of coal existed across Nigeria. The statistic goes on and on.

Statistically, Nigeria accounts for only 0.3% of its gross domestic product in Mining of solid minerals. This low figure is not surprising as it comes from the influence of vast oil resources over solid minerals. The 0.3% of the GDP can be traced to the recovery from the importation of minerals that could be domestically sorted for within the confines of the nation.

Although, over the last few years, the Nigerian mineral sector has seen incremental growth ranging from 0.14% as at 2014 to 0.3% as at researched. According to KPMG report showed that the sector once exceeded the budgeted revenue of the Federal Government in 2020by about 10%. However, all these statistic still indicates that the vast prospect of these resources is yet to be tapped or exploited.

KPMG report indicated that the Mining Sector exceeded the budgeted revenue of the Federal Government (FG) in 2020 by about 10% (N2.09billion as against N1.9billion), and increased its contribution to the Nation’s Gross Domestic Product (GDP) by about 23%.

Honestly, it is a clarion call for investors to come to Nigeria and invest in these vast resources. The economy stands the chance of supporting investments. The political atmosphere in the nation has come with stretched arms to welcome any foreign investor.

For instance deferred royalty payment, exemption from customs and import duties for plant, machinery, and equipment for mining operations, possible capitalization of expenditure on exploration and surveys, and extension of infrastructure such as roads and electricity to mining sites.

Besides these benefits, the holder of the mining lease shall be entitled to depreciation or capital allowance of 75% of the certified true capital expenditure incurred in the year of investment and 50% in subsequent years including 5% investment allowance. Expatriate quota & resident permit for approved expatriate personnel shall be duly enjoyed. In addition to roll-over relief under the capital gains tax (CGT), companies replacing their plants and machinery are to enjoy a once-and-for-all 95% capital allowance in the first year with 5% retention value until the assets are disposed of, 15% will be granted for replacement of an asset.

So what are you still waiting for…..lets go for exploration for benefits.

Written by: Engr Samuel Babalola