WORLD BANK’S has stated
that the Board approved a $150
million credit to enhance the
contribution of the mining sector
to the Nigerian economy. This
was contained in a statement
made available yesterday by the
world economic body.
The statement also explained
that the project will help establish
a strong foundation for mining
sector development and enhance
competitiveness by improving
information infrastructure and
knowledge, strengthening of key
government institutions, and
fostering of domestic investment
in the sector.
“Nigeria has a favorable
geological potential that, if
adequately assessed, well
exploited and sustainably
managed, could support broader
economic growth through
mineral sector,” said Rachid
Benmessaoud, World Bank
Country Director, Nigeria. “In line
with the Nigerian government’s
priority to diversify the economy
to a broader range of non-oil
productive sectors, one of the
key objectives of this project is
to support the government in
the realization of the full mineral
endowment for sector policy,
promotion, conducive business
environment and integrated long range
resources and investment
planning.”
Nigeria has been unable to
attract significant investment in
exploration and mining into the
sector, and current productivity
from the Nigerian mining
sector is still insufficient to meet
local demands, particularly for
industrial minerals. Insufficient
Geo-data and geological
knowledge, weak implementation
and enforcement of the mining
law and regulations, and a large,
poorly regulated and informal
artisanal and small-scale mining
sub-sector are among the critical
binding constraints for sector
development.
The project will help develop
measures for formalizing,
regulating and inventorying
artisanal and small-scale mining,
facilitate the flow of mineral
transactions, facilitate access
to finance, technology and
equipment, increase knowledge
and support the mining and
processing of the minerals in
accordance with best practices,
including with regards to
environmental and social
protections.
Over the medium to longer term,
expected results include
the ability to successfully attract
and develop mineral transactions
on medium to large mining
operations as well as any other
mining related (infrastructure)
investments.


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