Nigeria secures $150 million loan from World Bank to boost mining sector
(Ecofin Agency) - Nigeria has secured last week a $150 million loan from the World Bank for its mining sector. The loan which is provided in the framework of the Mineral Sector Support for Economic Diversification (MinDiver) project aims to boost the mining industry, by developing infrastructure, knowledge and attracting investment in the sector.
The news was revealed by Rachid Benmessaoud, World Bank Country Director, Nigeria. “Nigeria has a favorable geological potential that, if adequately assessed, well exploited and sustainably managed, could support broader economic growth through mineral sector,” he said.
According to the official, the facility falls in line with the government’s plan to diversify the economy to a broader range of non-oil productive sectors. It should help establish a conducive business environment for the sector’s growth. Under the MinDiver’s project, the government plans to formalize artisanal and small-scale mining, among others.
Though Nigeria’s mining sector actually contributes very little to the country’s gross domestic product, the minister of mines and steel development, Kayode Fayemi (photo), anticipated contribution to mining gross domestic product to exceed $25 billion by 2026. Truth is, as at now, Nigeria is in first recession in 25 years, due mainly to a slump in the prices of oil, its main export.