Artisanal, small miners get FG, BOI N5bn funding

The Ministry of Mines and Steel Development yesterday in Abuja 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. 5 billion which would be matched by another N2.5 billion by BOI.

A certifi ed artisanal miner, under the scheme, can access between N100,000 and N10 million; while a small scale miner can access between N10 million and N100 million.

Th e MOU was signed by the Minister of Mines and Steel Development, Kayode Fayemi and the Managing Director/ CEO of Bank of Industry, Olukayode Pitan, in Abuja.

Speaking at the event, Fayemi said the development is aimed at addressing the issue of insufficient funding and access to capital, which is a major factor militating against artisanal and small scale miners who account for about 80 per cent of activities in the mining sector.

According to the minister, the Bank of Industry would serve as the custodian and manager of the fund, which would be given to the artisinal and small scale miners at fi ve per cent interest.

Fayemi said: “Th is agreement is a meeting of minds between the FMMSD and the BOI.

We are in the fi rst instance launching a N5 billion fund.

With our ministry’s pilot contribution of N2.5 billion, BOI will match our contribution with another N2.5 billion.

“Th e loans would be made available to certifi ed industry participants at a single digit interest rate of 5% per annum, which is by far about the most attractive within our jurisdiction.

Th e CEO of Bank of Industry, Pitan in his response 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 BOI boosted the country’s movie sector.

The Minister of State for Mines and Steel Development, Bawa Bwari, would head the Project Management Committee which includes BOI offi cials with expertise in Mining Finance and Project Supervision.

Th e committee is charged with the responsibility of appraising, recommending, disbursing, implementing and monitoring the projects as well as recovering the loans and interests from the approved projects

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