The Minister of Solid Minerals Development, Dr. Dele Alake, has called on Chief Executive Officers (CEOs) of mining companies to take the lead in establishing a mining development bank to secure long-term financing essential for the sustainable growth of Nigeria’s mining sector.
Speaking at a CEO Roundtable during the 2024 Nigeria Mining Week, Dr. Alake urged industry leaders to champion the initiative, emphasizing the importance of a private-sector-driven model to ensure independence from government interference and guarantee effectiveness.
“The establishment of a mining development bank is not just a necessity but a catalyst for unlocking the sector’s potential,” Dr. Alake stated. He emphasized that a private-sector-led approach would ensure longevity, operational efficiency, and a robust credit system tailored to the sector’s needs.
The Minister, in a statement signed by Mr. Segun Tomori, his Special Assistant on Media, assured mining executives that the federal government is actively addressing bottlenecks in the sector to create a more investor-friendly environment. “We are dismantling barriers to ease operations and attract viable investments,” he said, reiterating the government’s resolve to make mining a significant contributor to Nigeria’s economy.
Dr. Alake addressed concerns about interference from state governments, reiterating that mining remains under the federal government’s exclusive legislative jurisdiction. “We have engaged extensively with state governments to align interests constructively,” he noted.
He revealed that states can now apply for mining licenses as Limited Liability Companies to participate legally in local resource mining. “This initiative ensures inclusivity while maintaining constitutional boundaries. Several states have already embraced this approach, and we have approved licenses for those that completed the process,” he added.
Looking ahead, the Minister disclosed plans for a mining infrastructure corridor to enhance investment opportunities, noting that inter-ministerial collaborations are already underway to kickstart the project.
He also addressed ongoing reforms in the sector, including a review of the rates regime, assuring mining executives that their concerns are being carefully considered.
Dr. Alake appealed for sustained cooperation from mining CEOs, highlighting that their collaboration is vital to the success of the ongoing reforms. “These reforms will lay the groundwork for a resilient and sustainable mining sector,” he emphasized.
The roundtable served as a platform for government and industry leaders to chart a shared vision for Nigeria’s mining sector, with a strong emphasis on private-sector innovation, infrastructural development, and policy coherence.
