Buhari demands progress report on solid minerals development fund

President Muhammadu Buhari has directed the Presidential Artisanal Gold Mining Development Initiative (PAGMI) to provide a six-month progress report on the solid minerals development fund.

Buhari gave the directive on Wednesday at a briefing by the steering committee and management team of PAGMI at the state house, Abuja.

PAGMI was launched in 2019 to foster the formalisation and integration of artisanal gold mining activities into Nigeria’s legal, economic, and institutional framework.

Speaking to the PAGMI team, Buhari charged them to scale up operations in the mining sector by ensuring investments beyond artisanal and small scale levels.

“The PAGMI Management Team should now develop innovative ways to move PAGMI to the next level to ensure the Nigerian mining story goes beyond artisanal and small-scale mining,” a statement by Femi Adesina, presidential spokesperson, quoted Buhari as saying.

“I support the Steering Committee’s target of aggregating 3-5 tons of gold over the next 12 months, as this will deliver tremendous fiscal and economic benefits to the nation. The Solid Minerals Development Fund should work with all relevant Government agencies to identify the support and funding needed to deliver on this aggregation target.

“Now that you have successfully delivered a pilot scheme in Kebbi State, it is time to roll out and expand sustainably across other States. The Government is committed to providing all the necessary support required.”

Buhari also urged PAGMI to ensure that the solid minerals development fund fast-tracks delivery of other directives to support the presidential fertiliser initiative.

The president said all stakeholders should conclude the ongoing assignment of recommending a portion of accruals to be dedicated to the solid minerals development fund.

“The dedication of a portion of accruals to create a sustainable income stream for the Solid Minerals Development Fund is essential to delivering the mandates assigned to the Fund,” he said.

“The development of a sustainable funding stream for the Fund will conclude the implementation of the Fund’s Establishment Act, which is a key focus area for this Administration.

“This initiative is of great pride to me because through our intervention we can reach hardworking Nigerians in the field, toiling and the quarries under the sun trying to earn an honest living.

“We have been able to protect them from clutches of those who exploit their hard labour, while simultaneously bringing them into the value chain to earn improved income from their hard work.

“I expect a six-month progress report that will clearly show significant progress by scaling up the program from its current pilot stage.”

In his remarks, Uche Ogar, minister of mines and steel development, who led the delegation, said since the validation of the initiative by the president, PAGMI had created the opportunity for formalisation and mainstreaming of artisanal miners, giving them the economic opportunity to live.

He lamented that between 2012 and 2018, $5 billion in gold was illegally smuggled out of Nigeria.

Also speaking at the briefing, Fatima Shinkafi, executive secretary, solid minerals development fund (SMDF), asked Buhari to increase the capitalisation of the fund to extend to other states requesting its intervention which will enable the committee to meet up with its 5-ton target.

Shinkafi also asked the president to order an intervention by the Central bank of Nigeria (CBN) to minimise losses by artisanal miners as a result of foreign exchange differentials. 

She urged the president to declare a ban on artisanal export of gold for at least one year to give PAGMI a chance to checkmate the smuggling activities and a temporary waiver on royalties presently set at about three percent.