Challenges in Acquiring Bank Support for Mining Sector Revealed by Government
The exploration of the mining sector in Nigeria has long been hindered by the absence of dependable data, posing a challenge for financial institutions to extend support to mining enterprises. This assertion was articulated by Dr. Oladele Alake, the Minister of Solid Minerals Development, during the 59th Annual Internal Conference and Exhibition (AICE) of the Nigerian Mining and Geosciences Society (NMGS) in Plateau State.
Dr. Alake underscored the significance of elevating the Nigerian Geological Survey Agency (NGSA) into a trustworthy source of data that can instill confidence in both local and international investors and financiers. He stressed the necessity for stakeholders to collaborate in updating the NGSA with new discoveries on rock formations, which are pivotal in comprehending geological and hydrological occurrences.
The minister expressed apprehension regarding the reluctance of mining companies to disclose their data to the NGSA, which impedes the agency’s capacity to furnish investors with current and comprehensive information. He urged engineers and geologists to contribute to the collective repository of data by sharing their discoveries with the NGSA, rather than withholding valuable information for personal gain.
Governor Caleb Muftwang of Plateau State also acknowledged the challenges confronting the mining sector, highlighting that many of the nation’s minerals remain untapped in terms of their economic potential. He emphasized the necessity for enhanced regulation in the sector to combat illicit mining activities and champion transparency.
The concerns raised by the government officials underscore the imperative for heightened collaboration among stakeholders in the mining sector to address the data deficiency that is stymieing the industry’s growth and progress. Lacking reliable and current information, both local and foreign investors are reluctant to engage in mining ventures, resulting in missed opportunities for economic advancement.
It is evident that rectifying the data predicament in the mining sector is vital in unlocking its complete potential and attracting the endorsement of financial institutions. Through concerted efforts to augment the accessibility and reliability of geological data, stakeholders can contribute to the sustainable development of the mining industry in Nigeria.
