By Gabriel Ewepu & Prince Okafor

Former Managing Director of Nigerian Mining Corporation, NMC, Mr. Biodun Olorunfemi, has urged insurance companies and banks to give adequate attention to operators in the solid minerals sector, even as the President of the Nigerian Mining and Geosciences Society, Gbenga Okunlola called on industries to utilize solid minerals from the country as raw materials for their construction and production works.

Olorunemi made the statement during his paper presentation titled, ‘Managing Risks Associated with Non-oil Resources Exploration’, at the ‘2016 National Insurance Conference’ held in Abuja. He said the involvement of banking and insurance professionals in the sector will further address problems of operational liabilities, flooding, equipment damage, health and safety, third party contractors, pollution, surface or underground caving-in, loss of revenue and problems associated with political instability.

He said: “We must join hands to support this government for prioritising the non-oil sector as a focus for national prosperity, and the Minister of Solid Minerals Development, Dr. Kayode Fayemi, has already confirmed the readiness of the Buhari-led administration to fund exploration as well as provide intervention fund for development of the sector.

“Nigeria’s insurance penetration of 0.3 percent is very poor and the country has the lowest insurance penetration, while Namibia has an insurance penetration of 7.2 percent, South Africa 14 percent and Angola 0.8 percent.

“The banks and insurance companies are expected to manage risks associated with mining business by providing access to funds, while ensuring that operators comply with global best practices.

“And with their involvement as finance and insurance professionals will further address the problems of operational liabilities, flooding, equipment damage, health and safety, third party contractors, pollution, surface or underground caving-in, loss of revenue and problems associated with political instability.