By Yange Ikyaa
The Minister of Mines and Steel Development, Olamilekan Adegbite, has expressed optimism that the proposed collaboration between Nigeria and Belgium will help Nigeria to further galvanize its capacity for the extraction and utilization of solid minerals.
Adegbite stated this at his office in Abuja when he received a delegation from the government of Belgian, led by the Belgian Ambassador to Nigeria, Daniel Bertrand.
Ayodeji Adeyemi, who is the Minister’s Special Assistant on Media, quoted him in a statement as saying “the programme is being financed by the Federal Government under the COVID-19 Stimulus Programme.”
Key aspects of the mining sector support programme include setting up of a gold souk (market) in Kano to encourage import substitution, gemstone marketing and processing center in Ibadan, gold processing center in Mopa-Muro in Kogi State, barite processing center in Ogoja, kaoline processing facility in Bauchi, and the lead zinc processing center in Abakaliki.
The Minister also mentioned that the investment environment created by the Buhari-led administration for investors along various mining and mineral sector value chain, including the establishment of mining-related clusters in the six geopolitical zones of the country, is aimed at boosting the productivity level of artisanal and small scale miners, generate wealth, and create employment opportunities for the youths.
Adegbite further revealed that the ministry had instituted some business-friendly incentives and policies in the sector to make it more attractive to foreign investors.
“Some of the incentives we have instituted to make the sector more attractive to investors include customs and import duties waiver for plant, machinery and equipment imported for mining operations,” he said.
Others are tax holidays of between three and five years as applicable, free transferability of funds and permission to retain and use earned foreign exchange, capital allowances of up to 95% of qualifying capital expenditure, deductibility of environmental costs, as well as money meant for environmental remediation, which will be tax-free. There is also a provision for 100% ownership of mineral properties.
According to Adegbite, “the Ministry of Mines and Steel Development is open to collaborating with Belgium to further develop the mining sector.
“The Ministry is making the sector more vibrant by fulfilling its mandate to diversify the economy away from oil, to create jobs and to raise the revenue profile of the government.”
Speaking further, the Minister explained to the Belgian Envoy to Nigeria about how the efforts and achievements recorded by his Ministry, as enabled by President Muhammadu Buhari, were making it possible for the mining sector to be put on the “driver’s seat” of the Nigeria economy.
In his remarks, Ambassador Bertrand expressed his country’s interest in the Nigerian mining sector.
“I am just looking to see if there is any possibility of cooperation between both countries as your sector is concerned,’ he said.
