Nigerian Minister Alake calls for private sector-led mining development bank

The Minister of Solid Minerals Development, Dele Alake, has called on mining companies to take the lead in establishing mining development banks.

This call was made during a Chief Executive Officers’ (CEO) roundtable held in Abuja on the sidelines of the 2024 Nigeria mining week, on Friday

Alake emphasized the need for a mining bank driven by the private sector to minimize government interference, ensure sustainability, and provide long-term credit for the sector’s growth.

He assured the CEOs that the federal government was committed to dismantling bottlenecks to enhance the ease of doing business within the sector and foster viable investments.

“We are actively working to remove obstacles that have hindered the growth of the mining sector,” Alake said, as quoted by his Special Assistant on Media, Segun Tomori. “We believe that with the establishment of a mining development bank, we can provide the necessary support for the sector to thrive.”

Alake also emphasized the importance of cooperation from mining executives in support of ongoing reforms. He noted that these reforms were vital to creating a sustainable and resilient framework for the long-term development of the mining industry.

The minister addressed concerns regarding state-level interference in mining operations, reiterating the Federal Government’s stance that sub-national entities do not have the constitutional authority to make policy decisions on mining. He explained that the sector falls under the exclusive legislative list, and therefore, only the federal government had the power to make laws and policies regarding mining.

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To address concerns around interference, Alake said that the federal government has held extensive discussions with state governments to explore ways of involving them constructively.

He noted that provisions have been made for states to apply for mining licences and operate as Limited Liability Companies, ensuring their participation in the mining of local resources.

“We have held extensive discussions with state governments to address concerns around interference and explore ways of involving them constructively.

“As part of these efforts, we have made provisions for states to apply for mining licences and operate as Limited Liability Companies.

“This approach ensures their participation in the mining of local resources, which was a major concern.

“Several states have already adopted this initiative, and we have approved licences for those that have completed the application process,” Alake added.

The 2024 Nigeria mining week, which took place from November 18 to 20, brought together stakeholders in the mining industry to discuss ways to unlock the sector’s potential and drive economic growth.

The event featured a conference, exhibition, and networking opportunities, providing a platform for mining companies, government officials, and other stakeholders to engage and explore opportunities for collaboration and investment.

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