Mining: FG woos foreign investors with three years tax holiday

Mining: FG woos foreign investors with three years tax holiday
Mr. Kayode Fayemi

The Minister of Mines and Steel Development, Dr Kayode Fayemi, has offered prospective investors in the Nigerian mining sector three years tax holidays, as part of federal government’s incentives to serious investors.

The tax holiday, according to the Minister, would commence from the date the investor commences mining operations in the country.

Speaking at the opening session of the ongoing Africa Down Under Conference in Perth, Australia, Dr Fayemi said the country was determined to return stronger to the global ore and mineral market and would drive the growth and development of the sector through the private sector.

The Minister listed other incentives approved by the Federal Government for investors in the mineral and mining sector to include exemption from custom and import duties on mining equipment.

Other incentive available to the foreign investors is that companies could be wholly owned by such investors.

Fayemi also identified security as another major area the government was investing in, in order to ensure security of investment as well as life and properties.

“Our government has a renewed commitment to the improvement of security across mine site, logistic related security and general terrorism.”

The Minister who presented graphical details of incentives obtainable in several other major mining countries, including Australia, USA, South Africa and Chile, told the audience, which comprised investors, operators and other allied professionals that Nigeria was offering more generous incentives, including favourable tax regime and royalties.

He said Nigeria was determined to build a world-class minerals and mining ecosystem designed to serve a targeted domestic and export market for minerals and metals, adding that part of the vision of the ministry is to contribute to job creation which.

“We are focusing on rebuilding our minerals and mining sector in three phases: Phase 1, in the immediate term, we are achieving import substitution by winning over domestic users of industrial minerals.

“Phase 2, our focus is on further expanding our domestic ore and mineral asset processing capacity. Phase 3, we will return stronger to the global ore and minerals markets at a market competitive price point,” Fayemi added.

The African Down Under Conference is renowned as one of the leading fora for facilitating discussions on how to grow investments and participation in the African mining space. It attracts significant interests from organisations prospecting for business opportunities in the mining sector in Africa.

Nigeria is attracting a huge attention at the conference in view of the recent discovery of nickel in some parts of Kaduna State by an Australian mining company and the planned presentation of the country’s mining roadmap at the conference.

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