The Minister of Solid Minerals Development, Dr. Dele Alake, has proposed several equity stakes ahead of the initial setup of the Nigeria Solid Minerals Corporation.
Revealing that President Bola Tinubu had approved the initiative, he stated on Monday: “We are looking at a 50% equity stake for the private sector, 25% for Nigerians, and 25% for the Federal Government.”
He disclosed this via his X page during his meeting with the British Deputy High Commissioner to Nigeria, HE Jonny Baxter.
Details on Solid Minerals Corporation
At the meeting, Alake disclosed that the Nigeria Solid Minerals Corporation would be driven by the Ministry of Finance Incorporated (MOFI), with a structure patterned after the Nigeria Liquefied Natural Gas (NLNG) model.
“I believe that the Solid Minerals Corporation will be an enduring legacy. No future government will be able to exert any political interference. The President has approved this initiative, and we are looking at a 50% equity stake for the private sector, 25% for Nigerians, and 25% for the Federal Government,” he said.
- He explained that the Corporation, alongside other initiatives by the ministry, aims to improve access to mining sites through the development of intermodal transport systems along mining corridors – including roads, rail, and waterways.
“As we look ahead to 2025, I am outlining our government’s plans to create a more competitive and globally recognised mining sector.
“Additionally, we are strengthening the regulatory framework, remediating abandoned mining pits for productive use, ensuring investor security, and expanding exploration to generate comprehensive geo-data that will attract major players to our sector,” he added.
- Alake emphasised that 2025 is a pivotal year for the administration, as the ministry focuses on ongoing efforts to drive reforms across the mining sectors and attract economic growth.
He asserted that positive trends in the economy are already emerging.
What You Should Know
While Nigeria stands as Africa’s leading energy producer, it has struggled to maximise its extensive mineral resources due to insufficient incentives, illegal activities, low investment opportunities, and neglect.
- The nation’s underdeveloped mining sector contributes less than 1% to its gross domestic product.
- Recently, the Minister of Solid Minerals Development, Dr. Dele Alake, criticised the N9 billion capital budget allocated to the mining sector in the 2025 budget, calling for an upward review.
- Alake told the National Assembly that the allocation was grossly “unacceptable” and inadequate to unlock Nigeria’s mining potential for the nation’s economic benefit.
The NASS committee subsequently suspended further screening of the ministry’s budget and invited the Ministers of Budget and National Planning, as well as Finance, to advocate for an upward review of the mining sector’s budget allocation to ensure Nigeria fully maximises the potential of its mineral resources.
