PwC Nigeria, the knowledge partner of Nigeria Mining Week
PwC has been the knowledge partner of Nigeria Mining Week and iPAD Nigeria Mining and Quarrying Forum since the beginning of this promising adventure. PwC is a crucial factor when it comes to determining opportunities for the solid minerals and quarrying sector in Nigeria. With a new government in place with a desire to exploit Nigeria’s vastly underexploited natural resources in the wake of the drop in oil prices, Nigeria Mining Week aims to open the door to an exclusive investment and networking opportunity for mining stakeholders to implement lasting policies that will shape the future of Nigeria’s mining industry.
PwC has been working closely with Miners Association of Nigeria (MAN) and the Ministry of Mines and Steel Development to deliver a full analysis of what are the needs and challenges to unlock the potential of mining in Nigeria.
To name a few, this is what has been highlighted in the last edition in 2019:
Recommendations and Action points for the government:
- Better marketing of the progress of the Nigeria Mining Industry to Local and Global stakeholders
- Organize the tax and fiscal regime for the mining sector; prevent multiple conflicting policies and laws. More emphasis needs to be paid to completing and approving the draft policies.
- Urgent geoscience data gathering to further support the airborne geophysical survey already carried out. Government has awarded some of these in recent times, however, emphasis needs to be paid in ensuring the project is commenced and concluded timely, to assist investors
- Need to establish Public-Private Partnership in the development and establishment of infrastructure, laboratories, data banks, and other capital intensive projects for the mining industry
- The government should fund the mining development fund. Despite setting up this fund and restructuring its board, its impact is yet to be felt in the industry. More intense support is needed to enable the fund to perform its functions
- State governments should better harness their mining potentials. State governments should seek to focus more on improving their Internally Generated Revenue through mining, as the Mining and Minerals act 2007 already provides an opportunity for State Governments to do so.
- The government needs to fast track the completion of the bid round for the Bitumen Licenses
- The government should assist in the organization and standardization of community levies to encourage local and foreign investors, and guard against ambiguity.
- Control mining operations to enforce miners to mine in an environmentally friendly manner. Continuation of current mining activities could result in more serious environmental tragedies.
- Re-establishing the milestones of the roadmap for the development of the solid minerals and metals sector.
- The government needs to re-consider the seven strategic minerals, especially considering the future of mineral resources and future demand
- The government should encourage backward integration, where requirements for commodities for infrastructure development and industrial production in Nigeria, are sourced primarily from Nigerian mines.
- Delineation should be taken more seriously, as this contributes more to economic development than actual mining without value addition.
- The government should encourage more inward integration in setting local standards and use of local professionals
- Fast-tracking and completion of the legal entanglement of the Ajokuta steel rolling plant and National Iron Ore Mining Company.
- Federal and State Government needs to organize the license and access to land disparity to increase investor confidence and ease of mining activities
Recommendations and Action points for the private sector:
- Miners seeking funding should ensure genuine records are presented for loan
- consideration, adequate evidence of proper company oversight and proper book Keeping.
- Miners need to be business ready to access funds and be able to demonstrate bankable projects
- Miners should pay more emphasis on equity funding to reduce the burden of borrowing costs.
- Miners should consider the formation of consortiums with similar products to increase the volume of products mined and available for sale and hence increase access to finance.
- Miners should do proper feasibility studies and data gathering, to establish the potentials of the mines in order to attract investors
- Miners should ensure proper corporate governance and compliance with policies, including partnering with credible professional firms, to attract foreign investors
- Miners should make use of marketing tools with global outreach (websites, social media) to promote their activities to the larger global audience
- Banks should set up specialized mining desks to create products that are more in line with the realities of the mining life cycles.
- Minerals processing before export to maximize returns for stakeholders
The 4th annual edition of Nigeria Mining Week, PwC followed up on the issues raised for the past 12 months and analyse the commodities trends for this specific region.Learn more about PwC Nigeria