AFNIS 2024: Only mining licences with ‘local value addition’ will be issued to investors —Tinubu

President Bola Tinubu has instructed the Ministry of Solid Minerals Development to issue mining licences to investors only if tied to “local value-addition” to curb losses incurred during the export of mineral resources.

The President, who Vice President Kashim Shettima represented, disclosed this while delivering opening remarks at the ongoing third edition of the Africa Natural Resource and Energy Investment Summit (AFNIS) in Abuja on Wednesday.

The summit, themed “Natural Resources for Economic Development”, is organised by Core International Mining Company in partnership with the Ministry of Solid Minerals and seven other key government ministries, Segilola Resources Operating Limited, PREMIUM TIMES and the Center for Journalism Innovation and Development (CJID), among other partners.

In his remarks, Mr Tinubu said his government is fully committed to creating an enabling business environment to attract investment that encourages ‘value addition’ on solid minerals before they are exported.

He explained that his administration recognises the losses incurred due to the export of crude mineral commodities and understands that it is time to change the narrative.

By doing so, the President said his administration aims to ensure that the teeming youth in the country are actively engaged in economic activities, acquiring skills, and contributing to the nation’s foreign exchange earnings.

“Therefore, the Ministry will only be issuing mining licences if tied together with local value-addition,” the president said.

Mr Tinubu noted that the summit’s theme this year—Natural Resources for Economic Development— stands at the forefront of advocating for leveraging Africa’s natural wealth to foster inclusive economic growth.

This, he said, emphasises that a shift towards sustainable energy sources does not compromise economic growth, social stability, or job creation.

“Africa holds vast potential in the sphere of local value addition. It is not merely about extracting minerals; it is about processing and refining them, thereby adding significant value,” the president noted.

“We intend to elevate Nigeria’s critical mineral resource wealth from potential to reality, creating a prosperous, resilient, and environmentally conscious future.”

Mr Tinubu said he is fully aware of the challenges that Africa faces in the area of power.

“Millions of our fellow citizens live without access to electricity, and this energy divide perpetuates poverty inequality and limits our economic potential,” he said, noting that within these challenges lies the opportunity for transformation.

Community development

In his remarks, Nigeria’s Minister of Solid Minerals Development, Dele Alake, said the imperative of extending the benefits of natural resource development to local communities is paramount.

He said the government is committed to ensuring that mining activities serve as catalysts for local economic growth and enhance the quality of life for citizens.

“Through robust Corporate Social Responsibility initiatives and proactive community engagement, our goal is to empower communities and foster inclusive development,” the minister said.

This commitment, Mr Alake said, is reinforced by the recent revision of the Community Development Agreement (CDA), which he initiated shortly after assuming office.

He emphasised that the updated framework ensures that local communities are integral partners in mining ventures, safeguarding their interests and ensuring direct participation benefits from resource extraction projects.

“The CDA exemplifies our unwavering dedication to sustainable development, transparency, and the enduring prosperity of all communities involved,” he said.