Nigeria looks to secure $150m loan from World Bank to revive Mining sector
(Ecofin Agency) - The Nigerian Government has initiated talks to secure a $150 million loan from the World Bank to kick-start the Mineral Sector Support for Economic Diversification (MinDiver) Project. This project aims to revive the ailing mining industry.
Kayode Fayemi (photo), Minister of Mines and Steel Development, who disclosed this in Abuja, said that the Board of Governors of the World Bank is meeting in Washington to discuss the loan. He said: “The Federal Government recently approved about N30 bn from the Natural Resources Fund to promote exploration for new minerals and improve the regulatory framework in the ministry. The ministry, through the Federal Government, is also negotiating a $150 m loan from the World Bank to commence the Mindiver Project aimed at further resuscitating the ailing sector.”
Fayemi explained that the government plans to build technical and managerial skills among Nigerian financial institutions to support mining projects. It also plans to invest in infrastructure, gender equity and also improve access to finance.
“In addition, we intend to establish the Nigerian Solid Minerals Investment Fund, structured as a private sector oriented investment outfit to provide financing to private sector-led projects in the mining sector. We anticipate contribution to mining gross domestic product to exceed $25 billion by 2026 as industries are better to use the output of the sector to substitute for imports and create an environment to support the enterprise,” he added.