Nigeria’s Mining Sector Gets Boost as Minister Approves N2.5 Billion Support Fund Transfer

In a move aimed at revamping the country’s mining sector, Nigeria’s Minister of Solid Minerals Development, Dele Alake, has approved the transfer of N2.5 billion from the Bank of Industry to the Solid Minerals Development Fund (SMDF). The development comes on the heels of a meeting with stakeholders to review mining license rates in Nigeria.

According to a statement released by Alake’s spokesperson, Segun Tomori, the minister and stakeholders reached a consensus to review the recently raised 100 percent royalty rates for minerals. The rate review is designed to align the sector with current market realities and ensure more effective management of Nigeria’s mineral resources.

The minister assured stakeholders that dialogue is ongoing with state governors and the Nigerian Governors Forum (NGF) to address interference by state governments, which has led to the shutdown of licensed mining operations and duplication of federal regulations. Alake emphasized that the revised license rates are necessary to help the government recover investments made in improving the sector’s infrastructure, while also deterring speculators who hold mining titles without active mining operations.

This development comes after the federal government raised royalty rates by 100 percent and introduced new rates and charges for mining licenses and others recently. The transfer of the N2.5 billion support fund to the SMDF is expected to provide a much-needed boost to the mining sector, which has faced several challenges in recent years.

The move is seen as a positive step towards revitalizing the sector and unlocking its potential to contribute to Nigeria’s economic growth. With the government’s commitment to improving the sector’s infrastructure and addressing regulatory issues, the mining industry is expected to become a significant contributor to the country’s economy in the years to come.