The Nigerian government is set to establish a new mining company, according to Segun Tomori, spokesperson for the Minister of Solid Minerals Development Dele Alake. This announcement was made during a recent XSpace discussion. Tomori noted that the Ministry of Finance Incorporated (MOFI) will manage the Nigeria Solid Minerals Corporation, which is expected to be launched in the coming weeks as a dedicated entity for the mining sector.

Ownership of the new corporation will be divided as follows: public ownership will constitute 25%, federal government ownership will also account for 25%, and private businesses will control the remaining 50%. This structure aims to minimise government and political influence even after the current administration concludes its term.

In addition to the new corporation, Minister Alake is advocating for the establishment of a special mining development bank. He called on leaders from mining companies to assist in initiating this bank during a meeting on November 22, 2024. Alake believes the bank will reduce government interference, enhance the stability of the mining sector, and provide essential long-term loans for industry growth.

Moreover, the government is actively working on simplifying processes within the mining sector by eliminating unnecessary regulations. This is part of a broader effort to make it easier for businesses to operate within this industry.

The Nigerian government plans to establish the Nigeria Solid Minerals Corporation to strengthen the mining sector while ensuring minimal government interference. This new entity will have a unique ownership structure. Additionally, there are plans for a mining development bank to further stabilise and support the industry by providing necessary financing. Overall, these initiatives aim to facilitate smoother operations for mining businesses in Nigeria.

Original Source: businessday.ng

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