KEY POINTS
- Dele Alake advocates a private-sector mining development bank to support investment.
- Federal reforms target sector bottlenecks and promote state participation via licenses.
- Plans for mining infrastructure corridors aim to boost sector sustainability.
Nigeria’s Minister of Solid Minerals Development, Dr. Dele Alake, has challenged Chief Executive Officers (CEOs) of mining companies to take the lead in establishing a mining development bank. Speaking at the CEO Roundtable during the 2024 Nigeria Mining Week, the minister highlighted the need for a private-sector-driven institution that would provide long-term credit, essential for the sustainable growth of the mining sector.
The Punch reported that, according to a statement by Segun Tomori, Senior Special Assistant to the Minister, Dr. Alake showed that a private-sector approach would reduce government interference and ensure the bank’s effectiveness and longevity.
Federal government tackles sector bottlenecks
The Minister assured mining executives of the federal government’s commitment to dismantling obstacles hindering the ease of doing business in the mining sector. He noted that ongoing reforms are aimed at fostering viable investments, enhancing local content, and creating a resilient framework for long-term development.
To address concerns about state-level interference in mining operations, Dr. Alake reaffirmed the constitutional position that mining remains under the exclusive legislative list. “We have engaged extensively with state governments to resolve interference issues and encourage their constructive participation,” he said.
As part of the reforms, the federal government has allowed states to apply for mining licenses and operate as Limited Liability Companies. Several states have embraced this initiative, with licenses already approved for those meeting application requirements.
Infrastructure plans and ongoing reforms
Dr. Alake announced plans for a mining infrastructure corridor to attract investment and streamline operations. The corridor will focus on improving transport and logistics to support mining activities. He highlighted ongoing inter-ministerial collaboration to ensure the project’s successful implementation.
The minister also sought continued cooperation from mining CEOs on key reforms, particularly the review of the sector’s rates regime. “We are carefully addressing concerns raised about rates to balance industry growth with government revenue,” Dr. Alake assured.
