The Buhari-led Government has secured $150m facility from the World Bank to support the economic diversification into solid minerals sector.
Nigerian Government Secures $150m From WorldBank for Mining Sector
The Nigerian Government has secured $150m facility from the World Bank to support the economic diversification into solid minerals sector.
This was disclosed by the Minister of Mines and Steel Development, Dr. Kayode Fayemi at a press briefing in Abuja on the ministry’s activities in 2016.
He also revealed that the ministry in partnership with the Nigerian Stock Exchange (NSE) and the Nigerian Sovereign Investment Authority was seeking to raise $600m investment for the sector.
This will hopefully be concluded and be in operation by the second quarter of 2017
The World Bank fund will be for the provision of technical assistance in restructuring the Mining Investment Fund.
Function of The Mining Investment Fund
The Mining Investment Fund will provide finance to artisans and small mining operators via development finance, microfinance and leasing institutions. The fund will re-activate abandoned proven mining projects including tin ore, iron ore, coal, gold and lead-zinc.
Work is currently going on to retrieve old data gotten from various mineral deposits across Nigeria. The ministry also plans to enter into joint ventures with private exploration companies to generate new data from Greenfield explorations.
Hopefully the analysis of this information will help to support speculations on the quantity and quality of mineral deposits in the nation.
Also Fayemi said “Our Nigerian Geological Survey Agency has undertaken additional ground investigations nationwide to upgrade our National Minerals Database and to further ascertain the assays of our mineral assets to the level that can easily attract financial investments and assure operators of the scope of operations required for further exploration and/or mining.
“We have improved the productivity of the sector by tripling the ministry’s contribution to the Federation Account to about N2bn in 2016, up from N700m in 2015.”
Prototype Minerals buying Centres Erected
The Nigerian Government had erected 10 prototype minerals buying centres across Nigeria for particular strategic industrial minerals.
These centres will serve as standardization centres to help artisans and small mining operators get a fair premium for their labour.
The minister also launched the Mining Implementation and Strategy Team and 38 project vehicles bought for over N400m for mines’ inspection.
The Mining Implementation and Strategy Team, headed by the Chairman of Nigerian Mining and Geosciences Society, Prof. Olugbenga Okunlola, will implement the Nigerian Government’s blueprint for the mining sector.