By Adesuwa Dan-Princewill
I was recently in the office of a friend’s upscale Real Estate office and as we exchanged pleasantries and soon got to the hot topic of US President Trump’s declaration that Nigeria is a Country of Particular Concern ( CPC ). It soon became obvious that sore nerves are at various levels of sensitivity.
This pronouncement has already cost Nigeria billions of dollars. Initiatives and opportunities in the making had simply vanished. Some losses are so steep and befuddling.
Chaii! One small “CPC” statement has caused so much damage?
A quick fact check revealed that markets expectedly reacted with reports indicating that billions of naira, some say trillions of naira, were wiped off the Nigerian Stock Exchange (NGX) as Foreign Investors repriced Nigeria’ s stability.
The economic consequence of a damage to reputation.
A CPC label translates or implies that the Government tolerates Human Rights Abuses, and that class for heightened Investor Scrutiny, a greater Political Risk that could include US sanctions or Aid restrictions.
The Mining Sector has concerns about Security and the need for transparency in supply chains are paramount issues. The CPC statement could trigger a crisis of confidence with lingering impact.
International relations are about mutuality, reciprocity, credibility, all of which affect politics, economics, international law and social issues on a global scale.
Diplomacy, Foreign Policy, International Security, Conflict Global Governance.
To be clear, Risk is at the core of these conversations. Liability and the sanctity of an enduring and just legal framework.
The US declaration of Nigeria as a Country of Particular Concern (CPC) on account of religious freedom violations is a corporeal binding risk multiplier that directly threatens the Foreign Direct Investments (FDI) into virtually all sectors of the Nigerian economy, including the very promising and potentially highly lucrative Gold & Gemstone industry.
Nigeria is making strong efforts to engage with US officials while mitigation and cushioning options are also undergoing consideration. The NSA, Nuhu Ribadu led delegation is a first salvo as subsequent efforts are likely to continue the process.
Many wonder if the threatened intervention to stop the killing of Christians in Nigeria meets the rules and expectations of International law. For those in the Mining Sector, many ask how all these would affect their investments and interests.
Fortunately, Nigeria’s official legal architecture in the Mining Sector is already positioned to help deescalate the tension as Foreign interests already have pathways for compliant and protected operations.
The mitigation and resolution of the challenges due to the reputational dent is to aggressively market the strong legal framework that separates and protects legitimate mining business from the chaotic I formal sector that is partially driven by forces of insecurity.
A cursory look at some of the core legal pillars in the Mining Sector
1. The Nigerian Minerals and Mining Act, 2007 provides a robust and clear legal framework. Through the Mining Cadastre Office ( MCO), Investors are guaranteed security of tenure for their mining titles , assuring then that their investments in exploration and development will always be protected by law.
2. Competitive Fiscal incentives. The law is explicitly investor friendly, offering concrete financial advantages that mitigate broad operational risks.
. Tax Holidays of up to three years for new entrants
Duty Free importation of essential mining equipment
One hundred percent Repatriation of Profits and Investments — a none negotiable term for much of global capital these days.
3. Direct Dialogue. The Gold & Gemstone Conference provides scalable opportunity for the government, private sector and stakeholders to engage international investors and foreign dignitaries in High-Level discussions incorporating Factual Data on pertinent issues in the Mining Sector.
4. By participating in the Gold & Gemstone Conference and Exhibition (GGCE), the flagship program of Women in Mining (WIMN), global investors have a veritable platform they can trust to put their capital behind the legal frameworks and ethical operators that are actively working to build a stable , prosperous and peaceful Nigeria.
5. Investing in the formal mining Sector is now also a positive political action, a vote of confidence in the idea that the rule of law is best way to overcome the ill will chaos of insecurity.
In conclusion, this is the fourth Gold & Gemstone Conference and Exhibition and Nigeria is at the verge of full takeoff. There is a sense that the CPC issue is rather an opportunity for all stakeholders to rally together and make Nigeria’ s mining Sector a positive rather than a negative force in the well-being and prosperity of all.
