Nigeria gets N16.8b loan for solid minerals
From Lawrence Njoku, Enugu
TO aid the development of the nation's solid mineral sector, the Federal Government has obtained a N16.8 billion (US$120 million) loan from the World Bank.
Known as the Sustainable Management of Mineral Resources Project, the credit is payable over 35 years including a 10-year grace period with no interest charged. The loan will attract service charge of 0.75 per cent on the principal balance not withdrawn and a commitment charge of 0.35 per cent.
The project is expected to increase the government's long-term institutional and technical capacity to manage the nation's mineral resources in a sustainable way.
In the five-year span of the World Bank assisted project, more than 500,000 informal or illegal miners are expected to be granted formal or legal status.
It will also decrease the import of solid minerals into the country and increase exports and establish a basis for poverty reduction and rural economic renewal in selected areas of the country via the development on non-farm income generating opportunities through small-scale and artisan mining. These, it is hope, would diversify attention from oil-based sources of income.
At the end of the negotiations yesterday, the Director of Multilaterals Institutions Department of the Federal Ministry of Finance, Alhaji Suleiman D. Kassim, signed the Agreed Minutes of Negotiations on behalf of Nigeria while Mr. Paulo De Sa, a leading industrial economist in the Oil, Gas, Mining and Chemicals Department signed for the World Bank.
In his remarks at the signing ceremony, held at the World Bank Country Office in Abuja, Alhaji Kassim described the negotiations as smooth. He also commended the nine-person-bank team for the cordial and friendly atmosphere created during the negotiation process.
Kassim, who led the 15-person government delegation that negotiated the credit assistance with the World Bank, expressed hope that it would lead to smooth disbursement and implementation of the project for the benefit of Nigerians.
In his remarks, the Country Director of the World Bank in Nigeria, Hafez Ghanem said he was impressed with the signing of the negotiations' minutes.
Ghanem assured that the bank would do more for Nigeria and also ensure proper implemention of the project and disbursement of the funds with the Nigerian partners.
The project is expected to enable mining companies have access to credit by working with banks to mitigate risks on lending to miners. Marching grants and advisory services will also be provided for the miners.
The project will assist the government in drafting a new Minerals Act to replace the 1999 Minerals Act and facilitate the establishment of a Mining Cadastre (Registry) for easy issuance of mining permits in a transparent manner.
"We expect to assist Nigeria to become a world class producer of gold and gemstones. Nigeria is presently a major producer of gemstones and tin but most are smuggled out of the country", said Paulo De Sa of the World Bank
He said the Solid Mineral's project would diversify economic activity in the country and substantially reduce poverty by increasing revenue accruing to the rural population through formalising and supporting miners with equipment, new mining technics and assistance.
Paulo De Sa, who described mining as a traditional activity in Nigeria, disclosed that virtually all the 36 states of the country, including the Federal Capital Territory can boost of minerals.
