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Why miners are yet to access N2.6bn mining fund after 3 years —Adegbite

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…promises to deepen Nigeria Mining Week

By Gabriel Ewepu – Abuja

The Minister of Mines and Steel Development, Architect Olamilekan Adegbite, Tuesday, explained why miners in the country are yet to access the N2,6 billion mining fund.

Why miners are yet to access N2.6bn mining fund after 3 years-Adegbite
Why miners are yet to access N2.6bn mining fund after 3 years-Adegbite

Adegite made the explanation during a press conference held at the Ministry’s headquarters in Abuja ahead of the 4th Annual Nigeria Mining Week coming up on October 14-16 in Abuja, with theme, ‘Removing the roadblocks along the value chain: Setting the mining industry as a key driver for economic recovery’, which is being organised the Miners Association of Nigeria, MAN.

He also assured that the Federal Government will deepen the annual Nigeria Mining Week for better performance and impact on the nation’s mining industry.

The 4th Nigerian Mining Week is expected to attract over 1, 200 mining experts, 180 mines and exploration companies, 40 sponsors with over 24 countries to be represented.

He said: This Solid Mineral Development Fund, SMDF, seed fund, the $2.5 billion that was given in 2016. The main purpose is to help miners to develop, especially the artisanal and small scale miners.

“I must admit that three years now the money has not been disbursed, but the good thing is that the money is intact. There is only one disbursement from that money. I think a quarry in Oyo State was able to access that fund, which was N95 million.

“The problem actually is to design a model that would work. There is this tendency that government money as the share of the national cake so everybody is conscious of that risk and so they are being careful not to throw government money away.”

He also assured that “The N2.5 billion is with the Bank of Industry, and the Bank of Industry supposed to match that fund with another N2.5 billion and that to make N5 billion.”

The Minister also disclosed that “We are designing some programmes to accelerate the disbursement of this money now. We are encouraging the miners to go into cooperatives because this supposed to be money that supposed to be accessed easily at low-interest rates, but at the same time, people are conscious of that fact that people could just take this money and elope with it and what is the guarantee to bring that money back.

“So one of the aims of the programme is to organise miners into cooperatives and let them understand that if one or two people get the money from their group and for other groups to access the money they have to return the money back to the people, and we going to apply peer pressure to monitor people who get the money. Not too long you will see this money in action and also grow the fund to get more money.”

On accessing mining equipment leasing by miners the Minister said that “Also we are also thinking of equipment leasing so that some of this money can be acquired equipment and some of this equipment will be placed strategically all over the country so that people operating in those areas can access the equipment. We will partner with manufacturers of the equipment.”

Meanwhile, he assured that the government will deepen the 5th Nigeria Mining Week.

“We want to put some life in Nigeria Mining Week and we want to deepen what happens. As it were Nigeria is not a known mining destination yet. We want to attract people, the right names to be at the Mining Week. It may be a bit late this year like I said the planning for the next Mining Week will start immediately after this one”, he said.

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