Nigeria to Establish State-Owned Company to Regulate Mineral Extraction and Boost Local Businesses

Nigeria’s government is currently in discussions about establishing a state-owned corporation dedicated to overseeing the country’s mineral extraction industry while also providing vital financial support to local businesses.

This initiative comes as Nigeria, Africa’s second-largest economy, possesses substantial, yet largely untapped reserves of valuable metals like gold, zinc, lithium, and iron ore.

Currently, the majority of mineral extraction is carried out by artisanal miners, typically on a small-scale or manual basis, resulting in significant revenue losses for the government due to a lack of proper taxation.

Dele Alake, the Minister of Solid Minerals, unveiled this proposal during a recent briefing held in Abuja, stating, “The proposed corporation will actively seek and secure partnership-investment agreements with major multinational companies from around the world.”

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The primary goal of this new entity is to attract substantial foreign direct investment into the mining sector, ultimately driving its growth and development.

The envisioned corporation will specifically prioritize the development of Nigeria’s vital commodities, including gold, coal, limestone, bitumen, lead, iron ore, and baryte, according to the minister.

Also, Nigeria, a leading producer of crude oil in Africa, is taking steps to curb smuggling and enhance oversight within the mineral extraction sector. Minister Alake confirmed the impending introduction of a new regulatory framework currently under review.

This comprehensive regulation aims to establish best practices and enforce stricter controls within the industry.

The proposal will be presented to lawmakers in the near future, marking a significant milestone in Nigeria’s efforts to enhance its mineral extraction industry and foster economic growth.