As legislators draft legislation to establish the new state-backed company to wean the West African nation off of its reliance on oil, the minister stated on Tuesday that Nigeria intends to offer investors at least a 75% stake in a proposed solid minerals corporation.
Neglect and inadequate incentives have made it difficult for Africa’s largest energy producer to derive value from its abundant mineral resources. Less than 1% of the GDP of the nation is generated by the undeveloped mining industry. Solid Minerals Minister Dele Alake stated at a conference in the nation’s capital Abuja that the government will own no more than 25% of the planned Nigerian Solid Minerals Corp, with the remaining shares going to the public and private investors.
Congress is thinking about dismantling state-owned miners, the National Iron-Ore to combat widespread illegal mining, Alake proposed incorporating the National Iron-Ore Company and the Bitumen Concessioning Programme under the new business and establishing a dedicated mines police unit. At the time of the plan’s initial public announcement in September, he stated that the corporation would aid in luring investments for the extraction of gold, coal, iron ore, bitumen, lead, and barite.
According to Alake, at least 499 licenses to purchase and sell minerals have been granted to businesses and private persons. Gold came in second at ninety-one, and lithium at number one on the list with 146 applications. The government is attempting to control the artisanal miners who now control the industry, according to Alake by organising them into cooperatives to compete for licenses.
At least 2,329 of them have been enrolled in cooperatives so far.
