Dr. Dele Alake, Nigeria’s Minister of Solid Minerals Development, has proposed an equity distribution for the Nigeria Solid Minerals Corporation comprising 50% for the private sector, 25% for Nigerians, and 25% for the Federal Government. This plan has been approved by President Bola Tinubu and aims to enhance the sector’s development. Alake made this announcement during a meeting with the British Deputy High Commissioner to Nigeria, Jonny Baxter.

The proposed corporation will be managed by the Ministry of Finance Incorporated (MOFI) and follow the model of Nigeria Liquefied Natural Gas (NLNG). Alake expressed optimism that the Solid Minerals Corporation would set a precedent for political independence in the sector. The initiative also includes plans to improve transportation systems to mining sites using roads, rail, and waterways.

Looking towards 2025, Alake outlined government efforts to bolster Nigeria’s mining sector, including regulatory reforms and securing investor interests. Recent evaluations reveal that despite Nigeria’s vast mineral resources, the sector contributes less than 1% to the GDP due to issues like illegal practices and low investment.

Alake has also urged the National Assembly to reconsider the N9 billion budget allocation for mining, which he deems insufficient to realise the country’s mining potential. The committee has paused further budget screenings, inviting relevant ministers to discuss necessary funding increases to optimise the sector’s contributions to the economy.

The Nigeria Solid Minerals Corporation is a new initiative intended to enhance the mining sector’s contributions to the economy. Nigeria is currently the leading energy producer in Africa yet faces challenges in effectively utilising its mineral wealth, primarily due to inadequate incentives and environmental concerns. The Minister’s advocacy for a larger budget highlights the urgency to capitalise on these resources for economic development. Historically, Nigeria’s mining sector has underperformed, accounting for a mere fraction of the GDP despite its potential. The focus on 2025 as a transformative year indicates a strategic push to reposition the sector in a competitive global landscape, ensuring sustainable growth and investment viability.

Dr. Dele Alake’s proposal for the Nigeria Solid Minerals Corporation marks a significant step towards revitalising Nigeria’s mining sector. The equitable stake distribution aims to attract private investment while increasing local participation. Understanding the need for adequate budgetary allocations is crucial to unlocking the sector’s potential. Observations from the Minister indicate a long-term vision for sustainable growth and resistance to political interference.

Original Source: nairametrics.com

The post Nigeria’s Solid Minerals Corporation: A Shift Towards Private Investment first appeared on Nigerian Mining News.

The Minister of Solid Minerals Development, Dr Dele Alake, has stated that the Nigeria Solid Minerals Corporation will greatly impact the mining sector, forming a crucial part of President Bola Tinubu’s legacy. During a meeting with British Deputy High Commissioner Jonny Baxter, Alake indicated that the corporation’s establishment would be modelled on the Nigeria Liquefied Natural Gas (NLNG) framework, with initial setup led by the Ministry of Finance Incorporation (MOFI).

Alake described the Solid Minerals Corporation as an enduring legacy, stating that it would prevent future political interference. He revealed plans for a 50% equity stake for the private sector, 25% for Nigerians, and 25% for the federal government. He anticipates that by 2025, the mining sector will be more competitive on a global scale, focusing on improving access to mining sites and enhancing the regulatory framework.

Plans include developing intermodal transport to mining sites, remediating abandoned pits, ensuring investor security, and expanding geo-data exploration. Alake also welcomed UK support for skill-building and technical assistance, urging British investors to consider Nigeria’s mining opportunities. He highlighted the significance of 2025 for the Tinubu administration, noting positive economic trends and the government’s commitment to reform.

Ambassador Baxter expressed support for creating the Solid Minerals Corporation, praising its NLNG model. He highlighted Nigeria’s economic growth as vital for global progress and reaffirmed the UK’s commitment to enhancing cooperation in the mining sector, ensuring continued investment in Nigeria’s resources.

The article discusses the establishment of the Nigeria Solid Minerals Corporation under the leadership of Minister Dr Dele Alake. It outlines plans for a reinforced mining sector aimed at sustainable development and highlights the collaboration with the UK to bolster investment and regulatory frameworks in Nigeria’s mining industry. This initiative forms part of President Bola Tinubu’s broader economic reform agenda, with a target for significant transformation by 2025.

The establishment of the Nigeria Solid Minerals Corporation marks a pivotal step in revamping the mining sector, ensuring sustainable development and reducing political interference. With shared goals for growth, support from the UK, and a strategic model based on NLNG, the initiative is poised to attract investment and create a competitive mining landscape for Nigeria by 2025.

Original Source: blueprint.ng

The post Transforming Nigeria’s Mining Sector: The Solid Minerals Corporation Initiative first appeared on Nigerian Mining News.