Nigeria offers three year tax holidays to investors who come into solid minerals sector

MINISTER of mines and steel development Dr Kayode Fayemi has offered prospective investors in the Nigerian mining sector a three-year tax holidays as part of federal government’s incentives to woo operators.

 

Due to the fall in the price of global oil prices, the government has stepped up efforts to diversify the Nigerian economy of late and solid minerals is a key area that is being looked at. Dr Fayemi, who is eager to push solid minerals as an alternative government earner, said that the tax holiday would commence from the date the investor commences mining operations in the country.

 

Speaking at the opening session of the ongoing Africa Down Under Conference in Perth, Australia, Dr Fayemi said Nigeria was determined to return stronger to the global ore and mineral market and would drive the growth and development of the sector through the private sector. He listed other incentives approved by the federal government for investors in the mineral and mining sector to include exemption from custom and import duties on mining equipment.

 

Other incentives available to the foreign investors is that companies could be wholly owned by such investors. Dr Fayemi also identified security as another major area the government was investing in, in order to ensure security of investment as well as life and properties.

 

Dr Fayemi said: “Our government has a renewed commitment to the improvement of security across mine site, logistic related security and general terrorism. We are focusing on rebuilding our minerals and mining sector in three phases as in the immediate term, we are achieving import substitution by winning over domestic users of industrial minerals.

 

“In phase two, our focus is on further expanding our domestic ore and mineral asset processing capacity. In phase three, we will return stronger to the global ore and minerals markets at a market competitive price point.”

 

At the event, the minister who presented graphical details of incentives obtainable in several other major mining countries, including Australia, the US, South Africa and Chile, told the audience, that Nigeria was offering more generous incentives, including favourable tax regime and royalties. He said Nigeria was determined to build a world class minerals and mining ecosystem designed to serve a targeted domestic and export market for minerals and metals.

 

Held annually, the African Down Under Conference is renowned as one of the leading fora for facilitating discussions on how to grow investments and participation in the African mining space. It attracts significant interests from organisations prospecting for business opportunities in the mining sector in Africa.

 

Nigeria is attracting a huge attention at the conference in view of the recent discovery of nickel in some parts of Kaduna State by an Australian mining company and the planned presentation of the country’s mining roadmap at the conference. Australia has expressed a keen interest in exploiting the Nigerian solid minerals industry.