The Bank of Industry on Wednesday put its total loan portfolio to the solid minerals sector of the economy at N24.6bn.
The Managing Director, BoI, Mr. Rasheed Olaoluwa, said this in Abuja at the opening of a sensitisation programme on investment opportunities in the solid minerals sector.
He said in view of the challenges facing the economy due to the decline in revenue as a result of oil glut in the international market, the bank had decided to improve funding to the sector.
Olaoluwa said the sensitisation programme was part of measures by the bank to stimulate private sector investment in the solid minerals sector.
He lamented that while other African countries had taken advantage of the huge potential in the solid minerals sector as revenue from that sector accounted for over 70 per cent of their revenues, Nigeria had yet to benefit from the sector.
The BoI boss said there were about 44 solid minerals in the country that had been identified by the Federal Government and capable of generating investments, creating jobs and reducing the level of poverty in the country.
Olaoluwa said, “Before independence, Nigeria had a solid mining industry. The economy then started relying extensively on petroleum from the 1970s. The dwindling oil revenue in recent times has made solid minerals a tool for diversification and this can be leveraged for economic growth as recommended by the United Nations’ Economic commission for Africa in its 2013 report.
“The mining sector is the goldmine for many Africa countries. Zambia derives more than 70 per cent of its revenue from copper; Ghana from gold; and Namibia from uranium.”
He said the bank had realised the potential of the sector, adding that this had enable it to realign its operation to the financing of the sector through the Nigeria Industrial Revolution Plan.
He said, “The NIRP, which was launched in February 2014, was done to improve diversification and competitiveness. The BoI has fully aligned its operations with the objectives of the NIRP with the launching of dedicated business groups
“Our total loans to the solid minerals industry stands at N24.6bn. The Federal Government has also identified 44 solid minerals that are available in commercial quantities in Nigeria.”
The Permanent Secretary, Federal Ministry of Mines and Steel, Baba Farouk, said the Federal Government had over the years tried to improve mining in the country through the establishment of legal and regulatory framework to guide the activities of the sector.
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