… blames applicants’ failure to meet stipulated requirements
FRANCIS KADIRI, ABUJA
THE Minister of Mines and Steel Development, Olamilekan Adegbite, has said that the disbursement of N311million, out of N1.08 billion for 13 loan applications approved by the Bank of Industry, as of September 30, 2020, is not encouraging.
A statement signed by Ijomah Opia for the Director, Press and Public Relations in the ministry, said the Minister expressed the concern in Abuja on Tuesday, at a one-day workshop, organised by the Ministry for Artisanal and Small-Scale Miners across the country.
The workshop was put together to deliberate and proffer best ways of accessing the intervention fund. The minister therefore urged the miners to suggest ideas that would enhance the template for the disbursement of the fund.
He disclosed that as of September 30, 2020, a total of 138 applications totalling N14.59 billion was received by the Fund and were at various stages of processing.
He said, “This disbursement is however low when compared to the total application, largely because applicants have failed to meet the necessary but stringent requirements stipulated by the bank.
“I am quite glad about today’s workshop which has brought together industry operators from across the country to deliberate and rub minds together on how best to access the support fund for artisanal and Small-scale Miners.
“Mining in Nigeria is still largely artisanal based, which is why the Ministry created a department called Artisanal and Small-Scale Mining, to provide institutional support for artisanal miners who form the bulk of the operators and manpower in the sector.”
The Minister, who was represented by his Special Assistant, Olu Adedayo, said the Ministry was working assiduously to ensure that the difficulties inherent in accessing the fund were removed.
“We are developing a unique template and favourable template for the disbursements of the fund. This includes equipment-leasing and hire-purchase loan facilities. We are of the belief that the new template when fully operational would spur enormous growth in the sector,” he said.
The Minister of State, Uchechukwu Ogah, said President Muhammadu Buhari graciously set aside the fund to boost the activities of artisanal mining so as to contribute to the economic development of the country.
He, however, stressed that N5billion was set aside as revolving loan and not a grant, emphasising the need for judicious use and repayment.
Ogah reiterated that the Bank of Industry (BOI) was always willing to partner with the artisanal, small scale miners and the Ministry, adding that they should be sincere in providing required information in their applications to the bank.
Speaking in the same vein, BOI representative at the workshop, Olayinka Mubarak, noted that the partnership between the Bank and the Ministry was to boost the activities in the mining value chain through the ASM.
She lamented the slow repayment of loans by beneficiaries, stressing that the fund was a loan and not a grant hence integrity was key to accessing the loan.
She emphasised that BOI was development in nature and not about profit making, and encouraged them to key into the laid down processes of accessing the loan.
