Dele Alake asks CEOs to spearhead establishment of mining development banks

Dele Alake, minister of solid minerals development, has called on mining companies to lead the way in establishing mining development banks.

Alake spoke at a chief executive officers’ (CEO) roundtable held on the sidelines of the 2024 Nigeria mining week.

In a statement on Friday, Segun Tomori, the minister’s special assistant on media, said Alake asked the CEO to take charge of creating a mining bank driven by the private sector to minimise government interference, ensure sustainability, and provide long-term credit for the sector’s growth.

“The was said to have assured the CEOs that the federal government is actively dismantling bottlenecks to enhance the ease of doing business within the sector to foster viable investments.

Tomori said the minister sued for continued cooperation from mining executives in support of ongoing reforms, noting that they are vital to creating a sustainable and resilient framework for the long-term development of the mining industry.

Addressing concerns regarding state-level interference in mining operations, the minister reiterated the federal government’s stance that sub-national entities do not have the constitutional authority to make policy decisions on mining as the sector falls under the exclusive legislative list.

Alake also highlighted provisions for states to apply for mining licences and operate as limited liability companies to boost their participation in mining local resources.

“We have held extensive discussions with state governments to address concerns around interference and explore ways of involving them constructively,” he was quoted as saying.

“As part of these efforts, we have made provisions for states to apply for mining licences and operate as Limited Liability Companies.

“This approach ensures their participation in the mining of local resources, which was a major concern.

“Several states have already adopted this initiative, and we have approved licences for those that have completed the application process.”

Tomori stated that the minister also outlined plans to create a more conducive environment for investment, including the development of a mining infrastructure corridor.

According to the media aide, Alake said inter-ministerial efforts are underway to launch the project and ensure its successful execution.

Assuring the CEOs that the ministry is carefully considering the concerns raised, the minister appealed for their continued support for ongoing reforms, particularly the review of the rates regime in the mining sector.