Fayemi offers three-year tax holiday to mining companies – The Cable

Kayode Fayemi, minister of mines and steel development, says investors in the mining sector will be getting a three-year tax holiday and waivers on import duties.

Speaking to prospective investors at the opening session of the ongoing Africa Down Under Conference in Perth, Australia, Fayemi expressed Nigeria’s determination to return stronger to the global ore and mineral market.

According to a statement by Olayinka Oyebode, special assistant to the minister on media, Fayemi looks to drive the growth and development of the sector through the private sector.

The tax holiday, according to the minister, will commence from the date an investor commences mining operations in the country.

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 incentives 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,” he said.

Fayemi, who presented graphical details of incentives obtainable in several other major mining countries, including Australia, USA, South Africa and Chile, told the 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.

“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.”

According to the senate committee on import duty and waivers, Nigeria lost N106 billion to  import duty waivers in 2015.