Glencore Eyes Investment in Nigeria’s Mining Sector Amid Government Push for Growth
Commodities giant Glencore (LON: GLEN) announced on Friday its interest in investing in Nigeria’s mining sector, contingent upon the government ensuring a stable business environment.
CEO Gary Nagle, who held discussions with Nigeria’s Minister for Solid Minerals, Dele Alake, expressed particular interest in nickel, cobalt, zinc, and other metals.
The timing of this visit aligns with Nigeria’s efforts to attract foreign investors to its underdeveloped mining sector.
Alake emphasized the federal government’s commitment to attracting major international companies to drive the growth of the mining sector, drawing parallels with its approach to the oil industry.
“We are offering tax waivers on imported equipment, policies facilitating full repatriation of profits to home countries, and removing bottlenecks to ease of doing business.
The ministry stands ready to address any concerns Glencore may have to ensure smooth operations in Nigeria,” Alake stated.
The government recently revoked inactive licenses and announced its intention to issue new mining licenses exclusively to companies engaged in local mineral processing.
Glencore has a history of business dealings in Nigeria, which ended amidst corruption charges and penalties.
Between 2007 and 2018, Glencore signed multiple agreements to purchase crude oil and refined products from the Nigerian National Petroleum Corporation (NNPC) and its subsidiaries.
In 2022, the UK Serious Fraud Office revealed that Glencore had paid over $28 million in bribes across five African countries, including Nigeria, between 2011 and 2016. An English judge imposed a penalty of £276 million ($345 million) on Glencore for its corrupt practices.
Nigeria, Africa’s foremost energy producer, has struggled to extract value from its abundant mineral resources, largely due to inadequate incentives and neglect of the mining sector.
Consequently, the country’s underdeveloped mining industry contributes less than 1% to Nigeria’s gross domestic product.
