N1bn Solid Minerals Corporation to Have Government 25% Ownership

The Federal Government of Nigeria is preparing to acquire up to 25 per cent of the N1 billion share capital of the proposed Nigerian Solid Minerals Corporation. Dele Alake, Minister of Solid Minerals Development, disclosed this information at the BusinessDay Solid Minerals Conference in Abuja. He also stated that the legislative process for establishing this entity is already underway.

Alake stressed that the formation of the corporation will be predominantly driven by the private sector. He explained that Nigerian citizens will hold 25 per cent of the shares, while private investors will be allowed a maximum of 10 per cent each, with the Federal Government retaining no more than 25 per cent. The Solid Minerals Committee of the House of Representatives is scheduled to conduct the initial policy dialogue for the proposed law on February 12 and 13, 2024.

The minister conveyed the government’s commitment to ensuring that the new company adheres to market values, with a focus on profitability and capital formation in the sector, while minimizing unnecessary interventions.

In addition, Alake highlighted the achievements of the campaign against illegal mining and the urging of artisanal miners to form cooperatives. As a result, there are now 2,329 registered artisanal miners cooperatives in the country, with 123 cooperatives registering in 2023. The Ministry provides extension services such as improving bookkeeping skills and drilling techniques to these cooperatives.

Furthermore, the Ministry has issued licenses for 986 buying centres across the 36 states of the Federation to streamline operations in this sub-sector. Efforts are also underway to amend the Nigerian Mining and Minerals Act 2007 to accommodate changes over the years and align it more closely with national priorities.

Charles Anosike, Director General of the Nigerian Meteorological Agency (NiMet), noted that mining activities are particularly susceptible to weather conditions due to their location in geographically and climatically challenged areas. NiMet plays a pivotal role in assessing and mitigating risks associated with extreme weather events that could disrupt mining operations.

The agency is also in the process of commercializing meteorological data through partnerships with the private sector, in accordance with the NiMet’s establishment Act 2022. This underscores the government’s commitment to enhancing the safety and productivity of mining operations through effective planning and risk management.

In conclusion, the proposed N1bn Solid Minerals Corporation aims to revitalize the sector with a private-sector driven approach, while ensuring increased involvement of Nigerian citizens and private investors. Alake’s address at the conference underscores the government’s dedication to facilitating the growth and sustainability of the solid minerals industry in Nigeria.