Solid Minerals

There are tremendous opportunities for investments in the solid mineral sector in Nigeria. The Federal Ministry of Solid Minerals grants prospecting licenses for investors (both local and foreign) to participate in the exploitation of the vast mineral resources in Nigeria. Borno state is blessed with abundant Solid Minerals deposits capable of feeding medium to large-scale industries for optimum industrial operation. These resources are widely distributed across the 27 Local Government Areas of the state.

Geophysical surveys and other studies have confirmed that Borno State is endowed with many mineral resources in large quantities, which can support many industries. These include Feldspar, Limestone, Kaolin, Clay, Potash, Iron-Ore, Natural Salt, Quartz, Magnetite, Diatomite, Trona, Mica, Silica Sand, Gypsum, Granite Chips, Flutters Earth, and Uranium.

Investment Opportunities

Investment Opportunities exist for the exploitation and export of the following solid minerals in Borno State:

·         Feldspar and Quartz are available in commercial quantities.

·         Silica Sand: over 3 million tones that can last for over 40 years at an annual production of 60,000 tons.

·         Precious stones traces of Aquamarine, Tourmaline Corundum, Amethyst, Topar, Garnet, Emerald, Zircon, Quartz of different colors, etc.

Incentives and Government Support

The Present Government welcomes the participation of, and is willing to collaborate with, the private sector in the provision of Mining services and will provide support in matters of;

1.      Loan guaranty,

2.      Provision of adequate mining sites, and adequate Security.

3.  Government will also grant a Three-year tax holiday to investments in this Sector.

POWER SECTOR DEVELOPMENT

Power supply is critical for business and investment, but the power sector in Nigeria faces challenges such as inadequate power generation, transmission, and distribution capacities. The country has an installed power generating capacity of slightly more than 16,384 MW, but only 11,972 MW is currently generated and less than 20% of the estimated national demand of 30,000 MW is being distributed. Only about 47% of the electricity generated is consumed, and power reliability is less than 40% over time. This has led to a reliance on alternative sources of power, such as fossil fuel, which increases production costs and contributes to carbon footprints. In Borno State, the current demand for power stands at approximately 700 MW, but the average daily dispatch is much lower, leaving a huge power supply gap.

The Nigerian President on the 2nd of March 2023 commissioned the Maiduguri Emergency Power Project (Independent Power Plant constructed by the Nigeria National Petroleum Company Limited (NNPC Ltd) to supply an additional 50 megawatts of electricity to Maiduguri and its environs, in order to bridge the gap and meet the projected demand of approximately 1,000 MW by 2030.

The Maiduguri Emergency Power Project is part of an incremental 4,000MW of power-generating assets that this administration embarked upon to improve the national power supply and stimulate economic growth.

Investment Opportunities

The passing of the Electric Power Sector Reform Act in 2005 signaled Nigeria’s commitment to reforming the sector. The Act aims to improve the performance of the sector by allowing Private companies to invest in and operate power companies in Nigeria. The Government through the Ministry of Power has also outlined a detailed roadmap for reforming the sector in the coming years.

The State has abundant potential which can be harnessed to produce electricity. These include Wind, Solar, Wood, Coal, hydro, Oil and Gas, Bioenergy, etc. On average, the State enjoys twelve hours of high solar radiation every day of the year. The Borno State Government itself is committed to tackling the State’s power problems and is actively collaborating with the Federal Government and the private sector in finding solutions.

In order to fill current and future deficits in electricity supply, Borno State desires to have a private sector-driven power sector infrastructure that is:

·         Efficient, reliable, and affordable.

·         Driven by cutting-edge.

·   Technology and environmentally friendly in generation, distribution, and transmission.

The State Government will welcome Investments in the grid and off-grid power solutions with a focus on coal, biofuel, hydro, solar, recycling waste, and geothermal power generation for urban and rural electrification to produce 200MW in four years from the present situation under a PPP Scheme.