A collaboration has been established between the Ministry of Solid Minerals Development and the Nigerian Export-Import Bank to address challenges in exporting solid minerals and to harness the bank’s resources for enhanced financing in the mining sector.
Segun Tomori, the Special Assistant to the Minister on Media, conveyed this development in a statement released on Wednesday in Abuja.
During a meeting with the Managing Director of NEXIM Bank, Abba Bello, on Wednesday, Dr. Dele Alake, the Minister of Solid Minerals Development, commended the bank for utilizing its financial tools to support the mining industry in fulfilling critical needs for equipment and funding. He also called for further efforts in this regard.
“I think your role is quite critical to filling the financing shortfall for local mining investors. We need you to up the game for our local investors so that we can minimize logistical bottlenecks for exports of solid minerals while also scaling up access to funding and mining equipment”, the minister said.
Briefing the minister on NEXIM Bank’s mining support scheme, Bello stressed that it is conceptualized to support local mining companies access to capital to develop critical minerals, provide credit enhancement instruments to de-risk projects, facilitate and attract investments to enable mining projects to optimize the contribution of the mining sector to the nation’s Gross Domestic Product and exports.
“The mining scheme will comprise Equipment Leasing Framework, which is designed to minimize investment capital outlay for needed production equipment; Contract Mining Framework, which would enhance productivity and scale of mining operations while the Buyers Credit/ECA financing is intended to leverage partnerships to enhance value-added operations and expansion of current mining operations”, Bello added.
The Managing Director of NEXIM Bank underscored the institution’s role in addressing logistical impediments to solid mineral exports. The successful survey and mapping of the lower River Niger were highlighted as initiatives that have improved navigation, thereby augmenting the capacity to facilitate the transportation of bulk solid minerals through the Ajaokuta terminal and Burukutu port.
Dr. Alake expressed contentment with the bank’s dedication to the mining sector’s development and assured the ministry’s collaboration to harness the bank’s resources for the mining industry’s benefit.
In recent times, the government has intensified efforts to diversify the economy by leveraging the mineral sector to boost revenue. Policies aimed at revitalizing the mining sector, overhauling the regulatory framework, and creating a more favorable environment for local and foreign investors have been implemented. Consequently, these policies have attracted numerous foreign investors willing to engage in solid mineral extraction, with 44 such investors operating in 500 communities across Nigeria.
