FG bans processing of Nigeria’s mineral resources abroad

A new mandate from the Federal Government requires mining companies to establish processing plants within the country in order to utilize its solid minerals, instead of exporting them for processing overseas.

During a media briefing to mark the one-year anniversary of President Bola Tinubu‘s administration, Minister of Solid Minerals Development, Mr. Dele Alake, announced a significant development.

He revealed that the administration had taken decisive action by revoking the mining licenses of approximately nine thousand inactive companies that had obtained approvals but failed to utilize their licenses for production.

Emphasizing the administration’s commitment to advancing the Solid Mineral sector, Alake highlighted that this move demonstrated their seriousness.

Furthermore, Alake disclosed that following the revocation of dormant licenses by Tinubu’s administration, new policies were implemented to attract fresh interest in the sector.

As a result, over 10,000 new license applications were received, with 4000 successfully issued to deserving applicants. The minister expressed confidence in Tinubu’s determination to elevate the solid mineral industry into a key economic player capable of rivaling the oil and gas sector and generating wealth for Nigeria.

In a related development, Steel Development counterpart Mr. Shuaib Audu Abubakar shared that the federal government had approved $25 million for revitalizing the Ajaokuta Steel Plant in Kogi State. This initiative would kick off with producing iron rods for use in the construction industry.

Abubakar announced that the ministry was on the verge of securing private sector funding to kickstart production of crucial military equipment at the plant, thus reducing the need for importing these items from overseas and bolstering national security.

He also mentioned that discussions were underway regarding whether to re-engage the Russian firm responsible for constructing the Ajaokuta steel plant or explore partnerships with companies from China, India, and local Nigerian firms to optimize operations at the facility for the country’s advantage.

The minister revealed plans to collaborate with the private sector to finalize the construction of a 100-megawatt power plant for continuous electricity supply.

Additionally, the government is considering establishing an industrial park on the vast land surrounding the company’s location.