Akinade Olatunji highlights that poor access to finance is a major obstacle for Nigeria’s mining sector. Current financing models are unsustainable, leading to reliance on informal borrowing. He advocates for private sector funding and mentions the importance of geological exploration to identify valuable mineral resources. Despite Nigeria’s wealth in minerals, investment remains low, necessitating a structured approach to finance and exploration.
Nigeria’s mining sector is significantly hindered by inadequate access to finance, as highlighted by Akinade Olatunji, President of the Nigerian Mining and Geosciences Society (NMGS). He claims the existing financing model is unsustainable, noting that many mining ventures rely on ad-hoc family borrowing rather than stable financial support. Olatunji stresses the necessity for a more sustainable funding structure, given the high interest rates that discourage mining investment, as banks focus primarily on short-term consumer finance.
To improve financing, Olatunji advocates for private sector-led funding solutions. He supports the idea of mining companies forming their own banks to better cater to the industry’s needs. This approach would ensure funds are allocated to the right projects, unlike Nigeria’s traditional banks, which focus on import financing. Despite rich mineral resources, the sector suffers from low investment levels, with only a few major mining activities currently operational, such as the Segilola gold project.
Olatunji explains that geologists play a critical role in exploring mineral locations through structured methods such as geophysical and geochemical approaches. Effective exploration requires understanding the quality and quantity of resources, ensuring only viable minerals are mined. The NMGS, established in 1961, continues to influence policy and advocacy in the geoscience and mining fields, aiming to foster sustainable development in the sector.
The Nigerian mining sector faces significant challenges, primarily due to poor access to financing and ineffective current models. A focus on private sector-driven financial solutions may foster better funding opportunities. Furthermore, the importance of structured geological exploration cannot be overstated, as it ensures that viable mineral resources are identified and developed responsibly. The NMGS plays a pivotal role in advocating for advancements in the industry, emphasizing the need for increased investment in mining.
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