FG, BoI Launch N5bn Funding Support for Artisanal, Small Scale Miners

The Federal Ministry of Mines and Steel Development (FMMSD) on Tuesday signed a Memorandum of Understanding (MoU) with the Bank of Industry (BoI) for the management of a N5 billion fund in support of Artisanal and small scale miners in the country.
Under the arrangement, the ministry would contribute N2.5billion which would be matched by another N2.5 billion by the BoI.

The Minister, Kayode Fayemi, said at the signing of the MoU that the development was aimed at addressing the issue of insufficient funding and access to capital, which is a major factor militating against artisanal and small scale miners in the country and account for about 80 per cent of activities in the mining sector.

Fayemi stated that, in addressing the challenge of insufficient funding and lack of access to capital, the ministry secured approval for N30bn (approximately $100 million) from the mining sector component of the Natural Resources Development Fund from the federal government of Nigeria.

Responding, the Chief Executive Officer, Bank of Industry, Pitan said the Bank was convinced that the fund would step up a rapid development in the mining sector, just as a similar funding arrangement administered by the BoIboosted the country’s movie sector.
He said BoI is a pioneer in the area of funding mining activities where other banks are reluctant to invest. He, however stated that the Fund is not an aid, but repayable by beneficiaries.


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