A Non-Governmental Organisation, Renevlyn Development Initiative (RDI), has commended the Federal Government on its policy of value addition to its indigenous minerals.
The executive director, Philip Jakpor, made the commendation in an interview with the News Agency of Nigeria on Sunday in Abuja.
Jakpor said that in the past, Nigeria`s minerals were exported in their raw form, leading to undervaluation in international markets and low revenue generation for the country.
The minister of Solid Minerals Development, Dele Alake, announced the introduction of the Value Addition Policy in 2024.
The policy requires all companies seeking mining licences to present detailed plans for adding value to minerals before their licences are granted.
The RDI boss said that the move would generate more revenue to the country and create jobs through the establishment of processing companies.
“We have been complaining that our minerals are exported raw and then we import the unfinished products twice the amount we export.
“So the value addition policy on the part of the government which will entail some level of processing of raw minerals is a good one.
“This is because in addition to saving us as a nation in terms of what we would have expended in importing or taking these things out, that sum remains in the country, so it is a good one, “ he said.
He further explained that it would also help build the capacity of local players to become competitive in international markets, as the policy includes branding and incorporating minerals into finished products.
He, however, urged the government to be determined in sustaining the policy to reap its benefits, especially with the global energy transition, where Nigeria possesses the critical minerals needed.
“The government should ensure that the value addition policy is implemented and made workable.
“I think we need local players involved in the mining industry, which is expanding as we advance on the part of just energy transition.
“We will be doing ourselves some good when we have local players, and not just celebrate Chinese firms coming into the country to mine and take these things away.
“Once the value addition policy is adequately supported, local companies that are interested in mining responsibly or processing mined materials, should be supported to go into these things and do it well,“ he said.
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