The Federal Government has approved a proposal to transfer N2.5 billion from the Bank of Industry to the Solid Minerals Development Fund. This fund is designed to improve access to financing for Indigenous miners by offering more favorable terms.
The Minister of Solid Minerals Development, Dr. Dele Alake, announced this during a three-hour meeting with stakeholders in the mining sector. A statement issued by Segun Tomori, the Special Assistant on Media, on Friday, noted that the meeting addressed recent developments, including the increase in license fees and its impact on the industry.
The statement said, “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 favorable conditions.”
The statement further mentioned that the government had agreed to review mining license rates, aiming to align them with current market realities and ensure better management of Nigeria’s mineral resources.
The minister explained that the revised license rates were necessary for the government to recoup investments made in the sector’s infrastructure. Stakeholders were also given the opportunity to suggest adjustments to royalty rates for minerals whose market values have fallen below official estimates.
Alake also revealed that additional measures, such as deploying satellite imaging, were being put in place to clean up the industry, attract credible investors, and support the Mining Marshals in tackling illegal mining activities and prosecuting offenders.
To boost morale in the sector, the minister announced the redeployment of federal mine officers as part of broader efforts to improve performance, with a warning that any officers failing to meet their duties would face disciplinary actions.
Addressing concerns from stakeholders regarding interference by state governments, including the shutdown of licensed mining operations and overlapping federal regulations, Alake assured that discussions with state governors and the Nigerian Governors Forum were ongoing. A joint task force from the ministry and the NGF would also be expanded to resolve issues and promote cooperation.
Alake expressed his appreciation to stakeholders for their candid feedback and stressed the ministry’s commitment to holding quarterly interactive sessions to foster dialogue and track progress in the sector.
Earlier, the President of the Miners Association of Nigeria, Chief Dele Ayanleke, presented a 10-page position paper outlining various concerns, such as the adverse effects of state government regulations on mining, the role of mining marshals, the need for value addition, rate reviews, and the exclusion of stakeholders from the National Assembly’s review process of mining laws.
The meeting was attended by key officials, including the Permanent Secretary of the Ministry of Solid Minerals Development, Dr. Mary Ogbeh; the Director-General of the Mining Cadastre Office, Engr. Simon Nkom; and the Special Adviser to the minister, Hon. Kehinde Bamigbetan.
