All new mining licences must have local value — Tinubu

President Bola Ahmed Tinubu has instructed the Federal Ministry of Solid Minerals Development to only issue mining licences if they have local value addition.

 This, he said, is to ensure that young Nigerians are actively engaged in economic activities, acquiring skills and contributing to the overall development of the economy.

The president gave the directive on Wednesday during the opening session of the African Natural Resources & Energy Investment Summit, 2024, at the State House Conference Centre, Abuja.

President Tinubu, who was represented by Vice President Kashim Shettima, said his administration is fully committed to creating an enabling business environment to attract investment that encourages ‘value addition’ on solid minerals before they are exported.

 “We recognise the losses incurred from exporting crude mineral commodities and understand that it is time to change this narrative. By doing so, we aim to ensure that our teeming youth are actively engaged in economic activities, acquiring skills, and contributing to the nation’s foreign exchange earnings. Therefore, the Ministry will only issue mining licenses if they are tied to local value addition,” the President noted.

President Tinubu noted that his administration’s target in the solid minerals sector is “To make Nigeria a leader in critical metals.”

While commending stakeholders for the establishment of the African Minerals Strategy Group with Nigeria as the first chairman of the initiative, the President said, “We aim to set new standards in the mining industry and ensure that Africa gets an equitable slice of supplying the world with critical metals.

“In our transition to cleaner and more sustainable energy systems, we also recognize the role that natural gas plays. Natural gas is a transition fuel that will fundamentally restructure our nation’s economy,” he added.

In leveraging opportunities in the renewable energy space, President Tinubu explained that “Nigeria has attracted over $2 billion in investment in the renewable energy sector, making it a fast-growing sector in the economy.

 He, however, explained that, “While we strive to embrace renewable and cleaner energy sources, we acknowledge that oil and gas continue to play a vital role in our energy and economic landscape.”

Speaking earlier, Minister of Solid Minerals Development, Dr. Dele Alake, announced the government’s strategy under the Renewed Hope Agenda to position Nigeria as a major player in the global minerals market.

“We are committed to transforming Nigeria’s solid mineral sector into a cornerstone for our nation’s economic diversification,” he said.