Stakeholders seek adequate funding for mining sector

• Urge more access to credit by industry players

Stakeholders in the solid mineral sector have said inadequate funding and lack of access to capital by players in the industry are major factors hindering the development of the sector.

They said that access to credit by industry players in the sector was necessary to drive growth.

The stakeholders spoke, yesterday, at a webinar organised by the Securities and Exchange Commission (SEC) in collaboration with the Federal Ministry of Mines and Steel Development ‘with the theme, “Financing the Solid Minerals Sector through the Capital Market and the Critical Role of Commodity Exchanges.”

Minister of State, Mines and Steel Development, Uchechukwu Ogah, insisted that the mining sector would serve as a platform for the diversification of the nation’s economy, in view of the dwindling fortunes of the oil sector.
ALSO, Executive Secretary, Solid Minerals Development Fund (SMDF), Fatima Shinkafi, noted that Nigeria had achieved remarkable success in some of the critical factors investors use to access mining industry attractiveness.

She regretted that the sector was among the least industries being funded by banks.

President, Association of Issuing Houses of Nigeria, Ike Chioke, who spoke on “Financing the Nigerian Solid Minerals Sector Through the Capital Market”, explained that though many of Nigeria’s mining activities are at artisan level, there is an opportunity to grow it with strong investment policy.

BESIDES, Chief Executive Officer of Lagos Commodity and Futures Exchanges, Akinsola Akeredolu, said that the commodity market must continue to be vibrant to drive growth.

Akeredolu said the enabling environment must also be provided for the industry to thrive.

Chairperson, Commodities Trading Ecosystem Implementation Committee, Daisy Ekineh, observed that though the mining sector falls under Exclusive List, both state and banks have a critical role to play in the development of the sector.

Nasarawa State Governor, Abdullahi Sure, however, lamented that state governments with mineral deposits were facing a lot of challenges in terms of attracting investors.

Sule said: “We have given out over 500 mining licenses, adding that the state was working to attract more investors. To ensure successful mining activities, we need to ensure that the host communities are not short-changed.”