President Bola Tinubu has directed the Federal Ministry of Solid Minerals Development to only issue mining licenses to applicants or investors that are ready for local value addition in the sector.
The President gave the directive on Wednesday during the opening session of the African Natural Resources & Energy Investment Summit, 2024, held at the State House Conference Centre, Abuja
He maintained that the order had become imperative in order to ensure that young Nigerians were actively engaged in economic activities, acquiring skills and contributing to the overall development of the economy.
Tinubu, who was represented at the event by the Vice President Kashim Shettima, reiterated his administration’s commitment to creating an enabling business environment to attract investment that encouraged ‘value addition’ on solid minerals before they were exported.
He stressed: “We recognize the losses incurred from exporting crude mineral commodities and understand that it is time to change this narrative. By doing so, we aim to ensure that our teeming youth are actively engaged in economic activities, acquiring skills, and contributing to the nation’s foreign exchange earnings. Therefore, the ministry will only issue mining licenses if they are tied to local value addition.”
Tinubu maintained that his administration’s target in the solid minerals sector was to make the country a leader in the global market of critical metals
While commending stakeholders for the establishment of the African Minerals Strategy Group with Nigeria as the first chairman of the initiative, the President said the administration’s aim was “to set new standards in the mining industry and ensure that Africa gets an equitable slice of supplying the world with critical metals.
“In our transition to cleaner and more sustainable energy systems, we also recognize the pivotal role that natural gas plays. Natural gas is a transition fuel that will fundamentally restructure our nation’s economy.
“Nigeria has attracted over $2 billion in investment in the renewable energy sector, making it a fast-growing sector in the economy.
“Our commitment is to continue this trajectory and attract more private sector involvement in the renewable energy space, including manufacturing locally produced solar panels and batteries”, he added.
He, however, emphasized that discussions on the energy transition must also include the significance of the petroleum industry as a cornerstone of the nation’s economy, adding that “while we strive to embrace renewable and cleaner energy sources, we acknowledge that oil and gas continue to play a vital role in our energy and economic landscape.”
Tinubu listed the strategic priorities in the sector to include the goal to attract more investment in the oil and gas industry; grow oil production to 2.1 million barrels a day by December 2024; improve investment in midstream and downstream infrastructure; tackle theft; and hold developers accountable for the highest environmental standards.
This is even as he restated the administration’s commitment to manage resources responsibly, minimizing their ecological footprint and maximizing their benefits for the nation.
Earlier in his opening remarks, Minister of Solid Minerals Development, Dele Alake, recalled the government’s strategy under the Renewed Hope Agenda to position Nigeria as a major player in the global minerals market
He said: “We are committed to transforming Nigeria’s solid mineral sector into a cornerstone for our nation’s economic diversification.”
Alake pointed out that noted that the administration was implementing wide-ranging reforms to create a more attractive environment for investors, with a focus on enhancing transparency, regulatory clarity, and investor confidence.
Noting that the plan encompasses several key areas, including policy reforms, sustainable practices, infrastructure development, and human capital enhancement, Alake explained that the initiatives were designed to address longstanding challenges in the sector and unlock the full potential of Nigeria’s vast mineral resources.
The minister said: “This summit represents a significant milestone in our collective journey toward addressing Africa’s vast natural resources and sustainable economic development.”
Photo Caption
L-R: Deputy Governor of Benue State, Samuel Ode; Deputy Governor of Nasarawa State, Dr. Emmanuel Akabe; Minister of Solid Mineral Development, Dr. Dele Alake; and Vice President, Kashim Shettima, during the African Natural Resources and Energy Investment Summit on Wednesday at the State House Abuja
