President Bola Tinubu has instructed the Federal Ministry of Solid Minerals Development to only issue mining licences if they are tied to local value addition.
The President said that this is to ensure that young Nigerians are actively engaged in economic activities, acquiring skills and contributing to the overall development of the economy.
Tinubu 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 in Abuja.
Represented at the event by his deputy, Vice President Kashim Shettima, in a statement by his spokesman, Stanley Nkwocha, the President said his administration is fully committed to creating an enabling business environment to attract investment that encourages ‘value addition’ on solid minerals before they are exported.
“We recognise 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 licences if they are tied to local value addition,” the President noted.
Tinubu further noted that his administration’s target in the solid minerals sector is “to make Nigeria a leader in 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 government aims 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 recognise the pivotal role that natural gas plays. Natural gas is a transition fuel that will fundamentally restructure our nation’s economy,” he added.
In leveraging opportunities in the renewable energy space, Tinubu explained that “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, however, emphasised that discussions on the energy transition must also include the significance of the petroleum industry as a cornerstone of the nation’s economy.
“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,” he stated.
The President highlighted 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 holding developers accountable for the highest environmental standards.
He further restated the administration’s commitment to manage resources responsibly, minimising their ecological footprint and maximising their benefits for the nation.
Earlier in his opening remarks, Minister of Solid Minerals Development, Dr. Dele Alake, announced the government’s strategy under the Renewed Hope Agenda to position Nigeria as a major player in the global minerals market.
“We are committed to transforming Nigeria’s solid mineral sector into a cornerstone for our nation’s economic diversification,” he said.
The minister noted that the government is implementing wide-ranging reforms to create a more attractive environment for investors, with a focus on enhancing transparency, regulatory clarity, and investor confidence.
The plan, he explained, encompasses several key areas, including policy reforms, sustainable practices, infrastructure development, and human capital enhancement.
These initiatives, he said, are designed to address longstanding challenges in the sector and unlock the full potential of Nigeria’s vast mineral resources.
“This summit represents a significant milestone in our collective journey toward addressing Africa’s vast natural resources and sustainable economic development,” Alake said.