The Renevlyn Development Initiative (RDI), a prominent non-governmental organisation (NGO), has praised the Nigerian government for its 2024 policy aimed at adding value to the country’s indigenous minerals. In an interview with the News Agency of Nigeria, RDI’s executive director, Philip Jakpor, expressed strong support for the policy, which mandates companies seeking mining licences to present plans for adding value to minerals before being granted permission to operate.

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    Jakpor explained that in the past, Nigeria’s mining industry has predominantly exported minerals in their raw form, leading to the undervaluation of these resources in international markets. This practice, he argued, has resulted in the country missing out on potential revenue. He noted that the introduction of the Value Addition Policy marks a positive shift in Nigeria’s approach to its mineral resources, encouraging the establishment of processing facilities within the country.

    The policy, announced by Dele Alake, Nigeria’s Minister of Solid Minerals Development, requires companies to demonstrate a clear commitment to processing raw minerals domestically. According to Jakpor, this move is a crucial step towards retaining more value from the nation’s mineral resources. “We have been complaining that our minerals are exported raw and then we import the unfinished products twice the amount we export. So the value addition policy on the part of the government, which will entail some level of processing of raw minerals, is a good one,” he said.

    Jakpor further emphasised that the policy would not only bolster Nigeria’s revenue generation but also create new jobs by fostering the growth of processing companies. This would lead to the development of local industries and provide opportunities for skill-building and capacity development for Nigerian workers.

    Another important aspect of the policy, Jakpor noted, is its potential to enhance the competitiveness of local players in the international market. He explained that value addition would involve branding and turning raw minerals into finished products, positioning Nigeria’s mineral sector to compete more effectively on the global stage.

    However, Jakpor urged the government to ensure the consistent and sustainable implementation of the policy, especially as the world shifts towards more sustainable energy sources. Nigeria possesses critical minerals needed for the global energy transition, and Jakpor believes that value addition could position the country as a key player in this emerging sector. “The government should ensure that the value addition policy is implemented and made workable,” he stated, emphasising the importance of local involvement in the mining industry.

    He called for increased support for local players, particularly those interested in mining and processing minerals in an environmentally responsible manner. “We will be doing ourselves some good when we have local players, and not just celebrate Chinese firms coming into the country to mine and take these things away,” Jakpor concluded, stressing that empowering local companies would allow Nigeria to retain more benefits from its mineral resources.

    The RDI’s support for the value addition policy reflects growing optimism among stakeholders who see it as a crucial step in the development of Nigeria’s mining sector. With the government’s backing, there is potential for this policy to transform Nigeria’s mineral wealth into a more sustainable and profitable industry, benefiting both the economy and local communities.

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