Mining FG grants tax breaks to investors

The Federal Government is committed to taking responsibility to ease mining operations in the country.

  • Published:
Kayode Fayemi, Minister of Mines and Steel Development play

Kayode Fayemi, Minister of Mines and Steel Development

(Reuters)
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The Federal Government will be granting tax breaks and duty waivers on imported mining equipment to foreign investors in the nation's mining industry.

This was disclosed by Minister of Mines and Steel Development, Dr. Kayode Fayemi while he was speaking at the opening session of the Africa Down Under Conference in Perth, Australia on Wednesday, September 6, 2017.

According to a report by The Punch, the minister highlighted incentives available to investors in the mining sector to include renewable tax breaks, duty waivers on imported mining equipment, and 100% ownership of business concerns, among others.

Speaking on the topic 'Mining for Shared Prosperity: Why Nigeria, Why Now?', Dr. Fayemi addressed a gathering of African ministers of mines and minerals, policy makers, investors, operators and mining financiers at the conference.

He assured potential investors about the Federal Government's commitment to taking enough responsibility to ease mining operations in the country.

He said, "You need the cooperation of the host communities as well as the state governments. Even when our constitution allows the Federal Government to issue you licences, you need the understanding and cooperation of the state governments and the host communities in whose environment you are going to work.

"The host communities should have a stake in your investment. Once that is done, they will see themselves as part owners and will ensure that no one sabotages your efforts. This, we have learnt through experience."

The minister used the massive high grade nickel deposit in Dagoma, Kaduna state, as a blueprint of the Federal Government's plan for the mining industry.

He said the security of the environment was one of the first major steps taken by the government to ensure the success of the project, adding that it could be a game changer if properly managed.

ALSO READ: FG to provide N2.5b loan facility for miners

While speaking at a two-day conference on Sustainability in the Extractive Industries (SITEI) on Thursday, July 20, 2017, in Abuja, Dr. Fayemi had announced that the Federal Government would be providing an initial N2.5 billion loan facility to miners in the country in a bid to boost the economy.

He said that the funding is part of the government's plan to encourage the local miners and to lure investors to the industry.

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