Why Nigeria?

WHY IS NIGERIA ON THE MINING BUSINESS MAP?

Despite having been neglected in the past, Nigeria’s mining industry has witnessed some phenomenal developments within the past 5 years.
Endowed with key minerals and metals, Nigeria has tremendous mining potential, and the government’s economic diversification agenda lies in the exploitation of these resources.
The Ministry of Mines and Steel Development, supported by the Presidency is committed to making Nigeria a new global mining hub, through various initiatives to revive the sector.

DID YOU KNOW?

  • For the past 10 years, Nigeria ranked in the top 5 of high Foreign Direct Investment in Africa
  • The extractive industry historically attracted the most Foreign Direct Investment
  • In 2018, Nigeria was in the top 10 global improvers in ‘doing business’ with 5 reforms implemented to improve the country’s attractiveness - according to the World Bank Doing Business Report, 2018
  • Nigeria is strategically located within the ECOWAS region and offers air, sea and road access
  • The Federal Executive Council approved a N30bn fund for Mining Exploration in 2017

WHAT ARE THE RESOURCES?

44 Exploitable Minerals in proven commercial quantities
US$ 2.1 bn Contribution to Nigeria’s GDP


Solid Minerals in Nigeria – source: KPMG, February 2017


Solid Minerals and gemstones – source: Nigeria Ministry of Solid Development, Investment brochure

GOVERNMENT INITIATIVES TO FAVOUR MINING OPERATORS AND INVESTORS

  • New companies going into the mining of solid minerals to be exempt from tax for the first 3 years of operation - Section 36 of Companies Income Tax Act (CITA).
  • 95% Accelerated capital allowance in the first year of use for mining assets - Second Schedule CITA
  • Tariff based incentives: 0% import duty on machinery & equipment in the mineral mining sector - S Heading 84.85.90
Coal, Gold, Copper and Iron Ore to be taxed <5%