Fed Govt Plans $600m Investment Fund For Solid Mineral Sector

Filed in News by on November 9, 2017

The Federal Government yesterday said it is planning to assemble a $600 million investment fund to finance the Solid Mineral sector as one of the drives to boost the nation’s economy.

Besides, the government said it had secured a $150 million loan from the World Bank to start the Mineral Sector Support for Economic Diversification (Mindiver) project aimed at funding strategic interventions in the sector.

Dr. Kayode Fayemi,

The Minister for Mines and Steel Development, Dr. Kayode Fayemi spoke in Lagos at a workshop on Contemporary Community Engagement Models in the Oil and Gas Sector-Lessons for Other Sectors, organised by New Nigeria Foundation.

He said the ministry was working with other entities, such as the Nigerian Sovereign Investment Authority (NSIA), the Nigerian Stock Exchange (NSE) and others, for the investment fund.

The minister noted that the development was a considerable departure from the past, judging by the fact that in 2015, out of the meagre N1 billion capital budget allocated to the ministry, only N352 million was released.

Fayemi, who was represented by O’Seun Odewale, said his ministry achieved a 300 per cent increase in revenue (royalties and fees) between 2015 and 2016.

He said: “As at July this year, the sector had already surpassed the entire revenue of N2 billion generated for the whole of 2016. Also, as at the end of September 2017, our Mining Cadastre Office has remitted more revenue than the total receipts in 2016.3

The minister said the institutional capacities of the ministry and its agencies had been strengthened to effectively regulate the sector with a particular focus on mines safety and security.

He added that a new partnership has been forged with the Ministry of Interior and the Nigeria Police Force (NPF) to establish the Mining Police as provided in the law.

The Managing Director of New Nigeria Foundation (NNF) Prof. Femi Ajibola said Federal and state governments are laying emphasis on the development of the solid mineral sector.


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