INTRODUCTION TO Nigeria

Nigeria is a West African state that lies bordered by Cameroon to the east, Niger to the north and Benin to the west.

Nigeria is best known for its oil and gas but the country also possesses a range of solid minerals that are of value in the energy sector, excluding oil and gas, these include coal, lignite, uranium, thorium and tar sands. Although it is true that oil and gas dominate Nigeria’s extractive industry, it should not be forgotten that there are abundant opportunities elsewhere in the minerals sector.

The government has created a favourable climate for business and industrial ventures. Administrative and bureaucratic procedures are being streamlined.

INVESTMENT OPPORTUNITIES

Attractive Incentives: A comprehensive package of incentives – general and sectoral - has been put in place to create a favourable environment for investment. General Incentives include:

Five to seven years tax holiday to pioneer companies considered beneficial to the country’s economy but located in economically disadvantaged areas.

Deductibility of up to 120% of R&D expense carried out in Nigeria.

Tax concession to industries that attain minimum local raw materials utilisation and to industries with a favourable labour capital ratio.

Free Flow of Investment: Exchange control regulations have been liberalised to ensure a free flow of international finance. There is now unrestricted movement of investment capital.

EXPLORATION POTENTIAL

Nigeria has enormous resources, most of which are yet to be fully exploited. They include ,mineral, agricultural and human resources. There is an abundance of low-cost English speaking skilled labour.

Large domestic market: Nigeria offers the largest market in Sub-Saharan Africa. The Nigerian market potential also stretches into the growing West-African sub-region.

The Nigerian extractive industry consists of 3 major sub-sectors;Oil ,Gas and Solid minerals.

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COMPANIES MINING IN Nigeria


LEGISLATION & MINING POLICY OVERVIEW

Nigeria’S ECONOMY

After several decades of weak economic performance, Nigeria’s GDP grew by 6.1% in 2004 after growing by almost 11% in 2003.

The non-oil sector has accounted for more than 6% of annual growth since 2000 and currently contributes more than 50% of GDP.

The government is convinced that further, substantial economic growth will follow if greater efforts are made to exploit the country’s non-oil mineral resources.