Alake tasks mining CEOs on development bank establishment

The Minister of Solid Minerals Development, Dr. Dele Alake has charged Chief Executive Officers (CEOs) of mining companies to lead the way in establishing mining development banks to guarantee the needed long-term credit for sustainable development of the mining sector.

Speaking at the CEO Roundtable on the sidelines of the 2024 Nigeria Mining Week, Alake encouraged the CEOs to spearhead the mining bank to make it private-sector driven to wean it off government interference and ensure its longevity and effectiveness.

In a statement by the Senior Special Assistant to the Minister of Solid Minerals Development, Segun Tomori, Alake assured the CEOs that the federal government is actively dismantling bottlenecks to enhance the ease of doing business within the sector to foster viable investments.

The minister sued for continued cooperation from mining executives in support of the ongoing reforms, noting that these reforms are vital to creating a sustainable and resilient framework for the long-term development of the mining industry.

Addressing concerns regarding state-level interference in mining operations, the Minister reiterated the federal government’s stance that sub-national entities do not have the constitutional authority to make policy decisions on mining, as the sector falls under the exclusive legislative list.

“We have held extensive discussions with state governments to address concerns around interference and explore ways of involving them constructively. As part of these efforts, we have made provisions for states to apply for mining licenses and operate as Limited Liability Companies. This approach ensures their participation in the mining of local resources, which was a major concern. Several states have already adopted this initiative, and we have approved licenses for those that have completed the application process,” Dr. Alake emphasised.

Looking ahead, the Minister revealed plans to provide a more conducive environment for investment, including the development of a mining infrastructure corridor. He emphasized that inter-ministerial collaboration is underway to kickstart the project and ensure its successful implementation.

Conclusively, the Minister appealed for the continued support of the CEOs on ongoing reforms, particularly the review of the rates regime of the mining sector, assuring them that the ministry is carefully considering the concerns raised.