Government’s Stake in N1bn Solid Minerals Corporation Revealed

The Minister of Solid Minerals Development, Dele Alake, has announced that the federal government plans to acquire up to 25 per cent of the N1 billion share capital of the Nigerian Solid Minerals Corporation. This disclosure was made during the BusinessDay Solid Minerals Conference held in Abuja.

Alake also disclosed that the legislative process for establishing the institution has already begun. He emphasized that the corporation would be driven by the private sector, with Nigerian citizens holding 25 per cent of public shares and private investors holding a maximum of 10 per cent of the shares each.

The minister underscored that the federal government’s objective is to ensure that the new company operates with a focus on profitability and capital formation, taking into account the deficiencies of the defunct Nigerian Mining Corporation.

Additionally, Alake highlighted the success of the campaign against illegal mining and the government’s encouragement of artisanal miners to form cooperatives. As a result, there are currently 2,329 registered artisanal miners’ cooperatives in the country, with 123 cooperatives being registered in 2023.

Furthermore, the Ministry has licensed 986 buying centres across the 36 states of the Federation, making it easier for miners to sell their products. Efforts are also underway to improve the Nigerian Mining and Minerals Act 2007 to accommodate changes over the years and align it with national priorities.

The Ministry’s continued facilitation of permit applications for refining and purchasing of minerals was also highlighted. Last year, 499 licenses were granted, with applications for Lithium, Gold, Tin and Coal being among the most common.

Charles Anosike, the Director General of the Nigerian Meteorological Agency (NiMet), expressed that mining activities are often impacted by weather conditions and extreme events, affecting safety and productivity. NiMet plays a crucial role in providing accurate meteorological data to assess and mitigate risks associated with extreme weather events, as well as to support effective planning and optimization of mining activities.

As the regulator of all aspects of meteorology in Nigeria, NiMet is empowered to commercialize meteorological data through partnerships with the private sector.

In conclusion, it is evident that the government’s stake in the proposed N1bn solid minerals corporation and the support provided to the mining sector reflect a commitment to driving growth and development, while ensuring safety and profitability. This move is set to reposition the solid minerals sector and contribute to the economic development of Nigeria.