The Federal Government is to present an intervention fund to be accessed by operators in the mining sector.
Minister of Mines and Steel Development Dr Kayode Fayemi addressed participants at the opening of the National Council on Finance and Economic Development (NACOFED) in Abeokuta, Ogun Statey.
He said the intervention fund would be sourced from the National Resource Fund, which is 1.6 per cent of the Federation Account, set aside for agriculture, solid minerals and water resources.
Dr Fayemi said President Muhammadu Buhari had given the ministry access to part of the fund.
The minister, whose paper: “The Non-oil Sector as a sustainable alternative in enhancing revenue generation”, attracted questions from participating commissioners of Finance, said funding was a major challenge in the sector.
Dr Fayemi, however, hoped access to the intervention fund and that from banks would lift the sector.
The minister lamented that the past administration denied the sector access to the Natural Resource Fund.
Dr Fayemi announced that stateswould now benefit from 13 per cent derivation from mining revenue.
“This is a significant shift that signposts our commitment to facilitating a win-win situation for stakeholders”, the minister said.
In deepening the ministry’s partnership with states, he said there were arrangements to establish a Council of Mining and Mineral Resources as a quarterly forum involving the minister, commissioners responsible for mining and natural resources as well as other relevant government officials.
“The forum would be an avenue to discuss pertinent issues in mining, which is of concern to governments. It will also allow us to track progress on agreed areas of collaboration”, Fayemi said.
The minister unfolded the ministry’s plan to set up zonal offices of the Mining Cadastral Office, so that its operations get closer to the states.
“Finally, we will work with states to find commercial means for them to co-invest with private companies to bring mining assets to market faster and more profitably.”
The minister assured states that the right regulative frameworks were being put in place to ensure that investors comply with global best practices in resource extraction by integrating relevant protocols on environmental conversation in mining and related business.
“This is why ecological justice is one of the major planks of our approach to the re-positioning of the solid minerals sector.” The minister added.