On the heels of the growing concerns of poor access to the N2.5 billion artisanal mining fund for small scale miners launched by the Federal Government in 2016, the Federal Government has pledged to ease the procedures of access of such funds to drive growth in the sector. This, analysts say, is still not contributing much to Nigeria’s Gross Domestic Product (GDP) despite potentials.
The artisanal miners many of whom had not formalised their mining business had lamented their inability to access the fund, citing concerns of ‘difficult conditions’ by the Bank of Industry, who requests for bank guarantee, collateral security, tax clearance, among others.
Since the establishment of the fund, domiciled in the Bank of Industry (BOI), Businessday findings reveal that only one artisanal miner has been able to access the fund, prompting concern of weak contribution of 0.12% of the sector to the GDP for a sector that largely has the capacity to drive Nigeria’s diversification away from oil resources.
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” In collaboration with the BOI, the Ministry established a small scale mining fund of N2.5 billion to grant loans to artisanal miners at 5% concessionary rate. The ‘stringent’ conditions which hitherto were necessary have made it difficult for people to access this fund. Only one artisanal miner has accessed the fund in the sum of N95 million out of the N2.5 billion,” Olamilekan Adegbite, minister of mines and steel development, said on Tuesday at the opening of mining week.
He stated that the Federal Government was working out some other unorthodox means to make sure that other people accessed this fund.
Speaking on the proposed Mineral Export Guidelines, the minister said, “There would be no room for royalty payment evasion. All mineral exports shall be inspected by government appointed independent pre-shipment inspection agents, who are empowered by law to render quantity and quality control services and monitor pricing.
