FG, BoI working to simplify conditions for N5bn mining fund ― Minister

Published by

4 years ago

Minister of Mines and Steel Development, Olamilekan Adegbite, on Tuesday, said the ministry and Bank of Industry (BoI) are currently working out ways of simplifying the stringent conditions set for miners who intend to access the N5 billion Nigerian Artisanal and Small-Scale Miners (ASM) Financing Support Fund.

ASM Financing Support Fund was established in 2017 by the ministry in collaboration with the Bank of Industry. The ministry made available N2.5 billion, while the BOI matched it with another N2.5 billion counterpart funding, making a total of N5 billion.

Adegbite who spoke in Abuja at a workshop on ASM Finance Support Fund for stakeholders in the mining industry from across the country said of the 138 loan applications totalling N14. 59 billion received by September 30, 2020, only 13 totalling N1.08 billion have been approved under the fund

“Out of this, the sum of N311 million has been disbursed as of September 30, 2020.

“I wish to inform you that we are working assiduously to ensure that the difficulties inherent in accessing the funds are removed. In this regard, we are developing a unique and favourable template for the disbursement of the fund.

“This includes equipment- leasing and Hire- Purchase Loan Facility. We are of the belief that the new template when fully operational would spur enormous growth in the sector.

“We are also open to good and legitimate ideas on creating a better template for the disbursement of the fund. I hope this workshop would be able to come up with some,” he stated.

ALSO READ: Lagos East Senatorial bye-election: Vote wisely for Abiru, Oladunjoye urges voters

The Minister explained that 368 Private Mineral Buying Centre operators have been registered across the country and that they have ensured that artisanal miners have access to the market through the formal economic system.

Minister of State in the Ministry, Sampson Ogar however, assured the miners that government was aware that the N5 billion was little when compared with the capital requirement of the industry and was already discussing with Central Bank of Nigeria (CBN) on the creation of special development fund for the industry.

He appealed to them to ensure that their proposals are bankable for BoI to approve and grant their loans.

An executive director with BoI, Ms Olayinka Mubarak, charged the miners to strive to meet the requirements for the loan as they were meant to ensure that their businesses succeed and they repay the loans.

“The money is a loan, not a grant. If the miners don’t repay the loan the BOI will have to deep hands into its own account and pay it back to the federal government. Where will you see money at 5 per cent?

She also reiterated that BOI, in collaboration with the government was ready to work out less stringent requirements that will however still ensure that miners repay their loans.

NIGERIAN TRIBUNE