Tinubu instructs the solid minerals ministry to link mining license issuance with local value addition. Learn how this affects the mining industry.
President Bola Tinubu has directed the Federal Ministry of Solid Minerals Development to grant mining licenses only when they are linked with local value addition, thereby establishing Nigeria as a top player in crucial metals.
At the African Natural Resources & Energy Investment Summit in 2024, it was emphasized by the president that youth must be actively engaged in economic activities to acquire skills and contribute towards foreign exchange earnings.
The Vice President, Kashim Shettima representing President Tinubu at the event stated that their administration is completely dedicated to establishing a favorable business atmosphere. This will help in drawing investments which encourage “value addition” of solid minerals before exporting them.
According to a statement released by Stanley Nkwocha, the Senior Special Assistant to the President on Media and Information of the Vice President’s office, Tinubu acknowledged that exporting crude mineral resources had resulted in significant losses and emphasized the need for change.
The President highlighted that the Ministry will only grant mining licenses if they are connected to local value addition. This measure is taken with the objective of ensuring active involvement of our young population in economic activities, skill acquisition, and contribution towards national foreign exchange earnings.
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“To establish Nigeria as a pacesetter in critical metals” is the goal of President Tinubu’s administration for the solid minerals sector.
The President praised stakeholders for forming the African Minerals Strategy Group, with Nigeria as its initial chair. He stated that their objective is to raise mining industry standards and secure fair distribution of critical metals from Africa on a global scale.
He further stated that in our shift towards cleaner and enduring energy systems, we acknowledge the crucial significance of natural gas. Serving as a transition fuel, it will revolutionize our country’s economy.
President Tinubu highlighted that Nigeria’s renewable energy industry is rapidly expanding, with investments exceeding $2 billion. This demonstrates a concerted effort to capitalize on opportunities within the sector.
We are devoted to pursuing this course of action and encouraging greater participation from the private sector in renewable energy, such as producing solar panels and batteries locally.
Nevertheless, he stressed the importance of acknowledging the petroleum industry as a foundation of the country’s economy when discussing energy transition.
He stated that though we endeavor to adopt sustainable and more environmentally-friendly forms of energy, oil and gas still hold a crucial place in our economic and energy framework.
The sector’s strategic priorities were emphasized by the President, which include attracting additional investments in the oil and gas industry, attaining a 2.1 million barrel daily production of oil before December 2024; enhancing investment in both midstream and downstream infrastructure while combating theft activities; ensuring that developers maintain top-notch environmental standards at all times with accountability measures put in place.
President Tinubu reiterated the administration’s dedication to responsible resource management, reducing their environmental impact and optimizing their advantages for the country.
Among the high-ranking officials present at the conference were Mohammed Sani Musa, representing Niger East Senatorial District in his capacity as a senator; Dr. Ishaq Salako, serving as Minister of State for Environment; Mr. Uba Maigari Ahmadu, who is currently holding office as Minister of State for Steel Development and Dr. Mary Ogbe working towards Minerals Department acting in her role as Permanent Secretary within this ministry.
Included among the attendees were Julius Mattai, Minister of Mines and Mineral Resources from Sierra Leone; Martin Gama Abucha, Minister of Mining in South Sudan; Monica Chang’anamuno MP, Malawi’s Minister of Mining; Wilmot Paye, Liberia’s Ministry of Mines and Energy head honcho. Also present was Oumar Moussa – Chad’s Deputy Petroleum & Geology minister- as well as representatives hailing governors presiding over states such as Ebonyi,Taraba ,Kwara,Kwa Ibom Enugu,Nasarawa et alia
