FG boosts mining development with N2.5bn

• Published On: 17 August 2024 at 13:24

The federal government has approved a plan to transfer N2.5 billion from the Bank of Industry to the Solid Minerals Development Fund.

The amount held in the mining sector support fund is intended to improve funding access for Indigenous miners by providing better terms.

Dr Dele Alake, Minister of Solid Minerals Development, revealed this during a three-hour meeting with mining industry stakeholders, according to The Punch.

Segun Tomori, the Special Assistant on Media, stated on Friday that the meeting was convened to discuss recent developments in the sector, including the recent increase in license fees and its implications.

The statement read, "In another significant development, the minister approved a proposal to transfer the N2.5 billion mining sector support fund from the Bank of Industry to the Solid Minerals Development Fund."

"This move is intended to ease access to funding for Indigenous miners by offering more favourable conditions."

It stated that the government has reached an agreement to support the review of mining license rates.

"This review aims to align the sector with current market realities and to ensure more effective management of Nigeria's mineral resources," according to the statement.

The minister clarified that the updated license fees were necessary to help the government recover expenses incurred in improving the industry's infrastructure.

Stakeholders were also granted permission to propose changes to royalty rates for minerals whose market values have fallen below official estimates.

Alake also revealed that additional steps were being taken to sanitize the mining sector, such as using satellite imaging to attract reliable investors and assisting the Mining Marshals in stopping illegal mining operations and bringing offenders to justice.

In an effort to boost morale in the sector, the minister announced the redeployment of federal mine officers as part of a larger effort to improve performance, warning that "officers who are found wanting in their duties will face appropriate disciplinary actions".

Earlier, Chief Dele Ayanleke, President of the Miners Association of Nigeria, presented a 10-page position paper outlining a number of issues, including the negative effects of state government mining regulations, the use of mining marshals, the need for value addition, rate reviews, and the National Assembly's exclusion of stakeholders from the mining law review process.