Elevating the Solid Minerals Sector: The Push for Private Sector Involvement

Folalumi Alaran
Abuja

In a recent development, the federal government has taken significant steps towards establishing a private sector-driven initiative in the solid minerals sector. The initiative aims to allow citizens to hold 25 per cent through public shares, while private investors would take up to 10 per cent in a N1 billion share capital initiative.

Dele Alake, the Minister of Solid Minerals Development, revealed this information during a keynote address at the inaugural Solid Minerals Conference organized by Businessday Newspapers in Abuja. He commended the organization’s interest in collaborating with the federal government to develop the mineral resources.

Emphasizing the need for private sector involvement in the sector, Alake highlighted the government’s commitment to ensuring a smooth transition through change and reforms. He also mentioned the upcoming policy dialogue by the Solid Minerals Committee of the House of Representatives on the proposed law to create the Nigerian Solid Minerals Corporation.

Outlining the plan for the new corporation, Alake stressed that the share structure aims to align with a private sector-led strategy. Under this structure, the federal government will hold not more than 25 per cent, Nigerian citizens will hold 25 percent through public shares, and private investors will be allowed a maximum of 10 per cent of the N1 billion share capital.

Reflecting on the past challenges in the sector, Alake expressed the government’s determination to learn from the shortcomings of the defunct Nigerian Mining Corporation. The focus is on ensuring that the new corporation operates within market values, minimizes unnecessary intervention, and encourages decision-making for profitability and capital formation in the sector.

Additionally, he highlighted the importance of acquiring comprehensive exploration data to de-risk investment. The successful First Nigerian Integrated Mineral Exploration Project produced data on the occurrence of key minerals across the country, leading to the creation of special areas in the cartography of cadastral systems.

Furthermore, Alake acknowledged the typical adversarial nature of the Nigerian media and its historical inclination to challenge new initiatives. Despite this, he stressed the importance of the private-sector driven Nigerian Solid Minerals Corporation and the ongoing legislative efforts to establish the critical institution.

The government’s efforts towards restructuring the solid minerals sector and paving the way for private sector involvement are a positive step towards driving growth and development. With a clear roadmap and commitment to collaboration, these initiatives have the potential to revitalize the sector and attract meaningful investment.

In conclusion, the push for private sector involvement in the solid minerals sector is a strategic move by the government towards sustainable development. As the legislative process unfolds, it is essential to maintain a transparent and inclusive approach to ensure that the proposed initiatives lead to positive outcomes for all stakeholders in the sector.