Miners association urges action on ₦2.5b idle funds

By : Kareem Azeez

Date: 9 December 2024 9:07am WAT

Association of Mineworkers and Construction Union (AMCU) mineworkers gather inside the premises of the Gold One Modder East operation mineshaft in Springs on October 25, 2023. - Some of the miners who stayed underground for more than two days in a standoff between rival South African labour unions began returning to the surface on October 25, 2023, their representatives said. The National Union of Mineworkers (NUM), one of the two unions involved, said 107 of the more than 500 workers who had failed to emerge from the Gold One mine in Springs, east of Johannesburg, after a night shift on Monday morning "have come back to the surface". (Photo by Guillem SARTORIO / AFP)

The Miners Association of Nigeria has urged the Executive Secretary of the Solid Minerals Development Fund (SMDF), Fatimah Shinkafi, to prioritise unlocking critical funding, including the ₦2.5 billion intervention fund lying idle at the Bank of Industry (BOI) for nearly a decade.

Shinkafi was reappointed as the Executive Secretary of the Solid Minerals Development Fund (SMDF) and the Presidential Artisanal Gold Mining Initiative (PAGMI).

Dele Ayanleke, National President of the Miners Association, described Shinkafi’s reappointment as an opportunity to strengthen the mining sector, particularly small-scale operations that have the potential to drive wealth creation and reduce poverty.

“I wish to implore her to see the reappointment as a divine call,” he said.

“Not only to ensure that the SMDF-AFC collaboration closes deals that will inject the much-needed investments into the sector but also to explore opportunities for similar partnerships aimed at funding small-scale leaseholders.”

Ayanleke called for immediate action on the ₦2.5 billion federal government fund intended to enhance the capacity of artisanal and small-scale miners.

“As Henry Dele Alake, the Minister of Solid Minerals Development, moves toward ensuring the repatriation of this fund, currently idling away and depreciating in value in the BOI’s vault, we expect that under her leadership, the SMDF will ensure its judicious utilization to achieve its purpose, despite the current economic challenges,” he stated.

The association also urged the federal government to revise the SMDF’s operational guidelines to position it as the premier financial institution for the mining sector.

“I will also seize this opportunity, on behalf of Nigerian miners, to implore the federal government to review the operational guidelines of the SMDF with a view to upgrading its status,” Ayanleke added.

He pledged the association’s readiness to support Shinkafi’s efforts in strengthening the sector, particularly through collaboration with key stakeholders to develop strategic policies and bridge financing gaps for mining operations.

“It is also expected that she will collaborate more with critical stakeholders in her policy formulation and strategic actions to reposition the Fund in bridging the gap in mining assets financing,” Ayanleke said.