Nigeria Offers 3-Year Tax Holiday to Mining Investors

Nigeria Offers 3-Year Tax Holiday to Mining Investors

The federal government has promised to grant a three-year tax holiday to investors ready to engage in mining activities in Nigeria, as part of incentives to boost mining operations in the the country.

Minister of Mines and Steel Development, Dr Kayode Fayemi, on Wednesday, disclosed the plan while speaking at the opening session of the ongoing Africa Down Under Conference in Perth, Australia.

According to the minister, the 3-year tax holiday would commence on the date the beneficiaries start mining operations in the country, reports The Nation.

Fayemi said Nigeria was prepared and 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 already approved by the federal government for investors in the mineral and mining sector to include exemption from custom and import duties on mining equipment.

Yet another incentive available to foreign investors in the mining sector, according to the minister, is that the companies could be wholly owned by such investors.

The mines and steel minister equally identified security as another major area the government was investing in, in order to ensure the safety 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,” he said.

Fayemi also itemised plans by the federal government for rebuilding the minerals and mining sector:

“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.”