Federal government is discussing the creation of a state company to regulate its mineral extraction industry and provide funding for local businesses.

Africa’s second biggest economy has sizable untapped deposits of metals, including gold, zinc, lithium and iron ore. But nearly all extraction is done by so-called artisanal miners on a small-scale or manual basis, which means that the government misses out on tax revenue.

“The proposed corporation will seek and secure partnership-investment agreements with big multinational companies worldwide,” Dele Alake, minister of solid minerals, told a briefing in Abuja on Sunday. The new body would aim to secure “massive foreign direct investment for the mining sector,” he said.

The proposed entity will focus on the development of the country’s essential commodities, such as gold, coal, limestone, bitumen, lead, iron-ore and baryte, the minister said.

Africa’s top crude producer is also introducing a new law aimed at cracking down on smuggling and providing best oversight practices for the operations in the sector, Alake said. The regulation, which is under review, will be presented to lawmakers in the coming days, he said.

Bloomberg