Mining Development Fund gets N2.5bn boost
The Federal Government has approved a proposal to transfer N2.5bn from the Bank of Industry to the Solid Minerals Development Fund.
The amount held in the mining sector support fund is meant to facilitate funding access for Indigenous miners by providing more favorable terms.
The Minister of Solid Minerals Development, Dr Dele Alake, disclosed this during a three-hour meeting with stakeholders in the mining sector.
A statement by the Special Assistant on Media, Segun Tomori, on Friday said that the meeting was conveyed to discuss recent happenings in the sector, including the recent hike in license fees and its effec
The statement read, “In another significant development, the minister approved a proposal to transfer the N2.5bn 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 reached a consensus supporting 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,” it added.
The minister explained that the revised license rates were necessary to help the government recover investments made in improving the sector’s infrastructure.
Stakeholders were also granted permission to propose adjustments to royalty rates for minerals that have seen their market values drop below official estimates.
Alake further disclosed that additional measures, including the deployment of satellite imaging, were being implemented to sanitise the industry, attract credible investors, and support the Mining Marshals in eliminating illegal mining activities and prosecuting offenders.
In a bid to boost morale within the sector, the minister announced a redeployment of federal mine officers as part of a broader effort to enhance performance, with a warning that “officers that are found wanting in their duties will face appropriate disciplinary actions”.
Addressing concerns raised by stakeholders over interference by state governments—such as the shutdown of licensed mining operations and the duplication of federal regulations, Alake assured that discussions with state governors and the Nigerian Governors Forum were ongoing.
He noted that ongoing deliberations by a joint task force of the ministry and the NGF would be scaled up to resolve knotty issues and foster cooperation.
Alake expressed his gratitude to the stakeholders for candidly sharing their concerns and emphasised the ministry’s commitment to holding quarterly interactive sessions to foster dialogue and receive feedback on the sector’s progress.
Earlier, the President of the Miners Association of Nigeria, Chief Dele Ayanleke, presented a 10-page position paper outlining various concerns, including the negative impact of state government regulations on mining, the operation of mining marshals, the need for value addition, the review of rates, and the exclusion of stakeholders from the review process of mining laws by the National Assembly.
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.
