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NIGERIAN MINING INDUSTRY:
OPPORTUNITIES FOR FOREIGN
INVESTORS
July 2009 Vol. 22: Issue 7
Nigeria is endowed with numerous
mineral resources such as talc, iron ore,
bitumen, gold, rock salt, gypsum,
lead/zinc, coal, gemstones, kaolin,
tantalite, bentonite and baryte located in
different parts of the country in
commercial quantity.
The ownership of the mineral
resources is vested in the Federal
Government of Nigeria as custodian on
behalf of the citizens of the country. The
Nigerian government has recognized
that the successful exploration and
exploitation of its mineral resources
requires both technical expertise and
financial strength to a large extent can
be provided by foreign investors.
The government grants mineral titles
to allow suitable investors to explore
for, mine and market mineral resources.
Thus the role of the government has
transformed from that of ‘owner-
operator’ to ‘administrator-regulator’.
Applications for mineral titles and
licenses are considered on a first –come,
first-served basis and may be made by
any investor, at any time, over any area
not covered by an existing title or not
otherwise reserved by the government.
©Blackfriars LLP 2010. All rights reserved. This document is for general guidance only. Definitive advice
should be sought from counsel if required. Blackfriars LLP, The Penthouse Floor, Itiku House, 28-30
Macarthy Street, Lagos. Tel: +234 1 739 0397; +234 1 736 9797; +234 1 736 9795; Fax: +1 646 536 8978.
http: www.blackfriars-law.com Email: info@blackfriars-law.com
An investor may enter into the
mining industry in Nigeria through the
acquisition of an existing mining
property from the original owner
however an approval must be obtained
from the Ministry of Solid Minerals
Development for such acquisition or by
obtaining an application either for a
Prospecting Right (PR), an Exclusive
Prospecting Licence (EPL), or a Special
Exclusive Prospecting Licence (SEPL).
The application shall state the financial
and technical capability qualifying the
applicant for an entry into the mining
sector.
In order to encourage foreign
investment in the mining industry the
government has put in place incentives
such as grant of a three-year tax holiday
to new mining companies which may be
extended for one further period of two
years. Mining operators are granted
exemption from payment of customs
and import duties in respect of plant,
machinery, equipment and accessories
imported specifically and exclusively for
mining operations.
In addition, every holder of a
mineral title is guaranteed free
transferability of funds through the
Central Bank of Nigeria and also
permission to retain a portion of their
foreign exchange in a foreign exchange
domiciliary account for use in acquiring
spare parts and other inputs required
for the mining operation which would
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otherwise not be readily available

without the use of such earning.

Apart from mining operations an

investor may in engage in the business
of importation and local marketing of
modern mining equipment, modern
mineral testing and quality control
technologies and reagents or engage in
local sales and export of crude or
processed solid minerals.

For further information, please contact:

Dr. Ikechi Mgbeoji

Email: Ikechi@blackfriars-law.com
Tel: + 234 1 739 0397
Fax: +1 646 536 8978

Ms. Lasbery C. Nwaeze

Email: Lasbery@blackfriars-law.com
Tel: + 234 1 739 0397
Fax: +1 646 536 8978

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©Blackfriars LLP 2010. All rights reserved. This document is for general guidance only. Definitive advice
should be sought from counsel if required. Blackfriars LLP, The Penthouse Floor, Itiku House, 28-30
Macarthy Street, Lagos. Tel: +234 1 739 0397; +234 1 736 9797; +234 1 736 9795; Fax: +1 646 536 8978.
http: www.blackfriars-law.com Email: info@blackfriars-law.com