Just In : Federal Government Announces Tax Waivers For Imported Mining Equipment And Related Goods
Federal Government Announces Tax Waivers For Imported Mining Equipment And Related Goods
The Federal Government is considering the provision of tax waivers on imported mining equipment as part of its strategy to boost the mining sector, according to statements made by the Minister of Solid Minerals Development, Dele Alake, during a meeting with his Saudi Arabian counterpart, Bandar AlKhorayef. The announcement was made at the Future Minerals Forum in Riyadh, Saudi Arabia, aimed at attracting investments into the Nigerian mining industry
The minister emphasized the government’s commitment to granting tax incentives on imported equipment dedicated to the mining sector, with a focus on ensuring the full repatriation of profits for investors. This move is seen as a measure to encourage legitimate mining activities and promote compliance with regulations, particularly in light of persistent issues of illegal mining, especially in the North East region of the country.
Despite existing bans and promised strict regulations by governors in states such as Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe, illegal mining activities involving underage individuals persist, leading to the theft of valuable minerals such as gold, sapphire, diamond, copper, lithium, aluminum, and iron. The minister’s assurance on tax waivers and profit repatriation is expected to contribute to attracting foreign investments and addressing challenges in the sector.
The statement from the minister’s special adviser highlighted President Bola Tinubu’s initiatives on profit repatriation policies, tax waivers, and a revamped security architecture aimed at securing mining areas effectively. Dr. Alake emphasized the importance of partnerships, citing the abundance of critical minerals in Nigeria that are crucial for the global energy transition.
The minister expressed Nigeria’s willingness to collaborate with Saudi Arabia, stating that the partnership would be instrumental in exploration, exploitation, extraction, processing, and local value addition. He advocated for investments in local value addition, including the processing of solid minerals to establish factories in Nigeria, generating employment and contributing to economic growth.
In response, Mr. AlKhorayef echoed Nigeria’s focus on diversifying the economy, particularly emphasizing the mining sector. Both countries agreed to establish a joint technical committee to facilitate collaboration, with a concrete action plan and timelines to harness their comparative advantages in mining sector development.
The Nigerian delegation included key officials from the Solid Minerals Development Fund, Mining Cadastral Office, Nigeria Geological Survey Agency, and other relevant bodies. On the Saudi Arabian side, the Minister of Industry and Mineral Resources, HE Bandar AlKhorayef, Vice-Minister Mining Affairs, Engr. Khaled AlMudifer, and other government officials represented the Kingdom of Saudi Arabia.
