The Federal Government recently enacted a groundbreaking policy mandating mining companies seeking to utilize Nigeria’s solid minerals to establish processing plants within the country. This policy shift requires companies to process the materials domestically instead of exporting them for processing overseas.
During a media briefing commemorating the one-year anniversary of President Bola Tinubu’s administration, Mr. Dele Alake, the Minister of Solid Minerals Development, unveiled this new directive. He highlighted the administration’s commitment to fostering the development of the solid mineral sector by revoking the mining licenses of approximately nine thousand inactive companies that had received approvals but failed to utilize the licenses for production.
Alake emphasized that while the previous administration promptly rescinded the dormant licenses, they have implemented new policies attracting over 10,000 new license applications. Out of these, 4000 fresh licenses have already been issued to eligible applicants, showcasing the government’s dedication to revitalizing the solid mineral industry.
The Minister proudly declared the administration’s ambition to elevate the solid mineral sector into a significant economic powerhouse capable of rivaling the oil and gas industry, thereby generating new avenues for wealth creation in Nigeria.
In addition, Mr. Shuaib Audu Abubakar, the Minister of Steel Development, revealed that the government has approved a $25 million fund to revive the Ajaokuta Steel Plant in Kogi State. This initiative aims to kickstart production of iron rods for the construction sector.
Abubakar mentioned that the ministry is in the final stages of securing private sector funding to enable the plant to fabricate essential military hardware locally, reducing the country’s dependence on imported items.
Furthermore, discussions are underway within the ministry regarding the potential reengagement of the Russian firm responsible for constructing the Ajaokuta steel plant or collaborating with companies from China, India, and local Nigerian firms to maximize the plant’s operational capacity for the nation’s benefit.
The Minister also highlighted plans for the establishment of a robust industrial park on the expansive land surrounding the Ajaokuta Steel Plant. This initiative aligns with the government’s vision to complete a 100-megawatt power plant for uninterrupted electricity supply, further showcasing their commitment to creating a conducive environment for industrial growth and development.
