Alake Moves N2.5bn Mining Fund From BoI To SMDF

Minister of solid minerals development, Dr. Dele Alake, has approved the transfer of the N2.5 billion mining sector support fund from the Bank of Industry to the Solid Minerals Development Fund (SMDF). This move is intended to ease access to funding for indigenous miners by offering more favourable conditions.

The federal government and mining stakeholders have agreed to uphold the licence rates review recently carried out in the sector.

At a recent three-hour meeting, the stakeholders were also granted the go-ahead to propose adjustments to royalty rates for minerals whose market values have dropped below official estimates.

Alake explained that the revised licence rates were necessary to help the government recover investments made in improving the sector’s infrastructure as well as deter speculators who hold mining titles without any active mining operations.

According to a statement by his media assistant, Segun Tomori, the minister further said the rates review was undertaken to align the sector with current market realities and to ensure more effective management of Nigeria’s mineral resources.

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Dr. Alake further disclosed that additional measures, including the deployment of satellite imaging, are being implemented to sanitise the industry, attract credible investors, and support the Mining Marshals in eliminating illegal mining activities and prosecuting offenders.

Meanwhile, the minister announced a redeployment of federal mine officers as part of a broader effort to enhance performance, adding that those found wanting in their duties will face appropriate disciplinary actions.

On his part, the president of the Nigerian Miners Association, 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.

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 gave the assurance that discussions with state governors and the Nigerian Governors’ Forum (NGF) were ongoing to resolve knotty issues and foster cooperation.

Signatories to the stakeholders’ position paper included prominent representatives from various mining-related organisations such as Prof. Akinade Olatunji (Nigerian Mining & Geosciences Society),  Kelvin Dele Oye (NACCIMA),  Regina Ike-Edzuwah (Women in Mining in Nigeria), Dr. Albarka Hassan (Nigerian Society of Mining Engineers), Patrick Odiegwu (Association of Miners & Processors of Barite), Seun Olatunji (Lagos Chamber of Commerce and Industry),  Sanni Shehu (ECOWAS Federation of Chambers of Mines), and Adeniran Ajibade (Gemstones Miners and Marketers Association of Nigeria).