BOI warns
beneficiaries not to see grant as free money
Despite the
limited access to finance, and illegal artisanal mining activities, federal
government has commenced disbursement of N5 billion to artisanal and
small-scale
miners in the country.
Minister of
Mines and Steel Development, Dr. Kayode Fayemi disclosed at the signing of MOU
with Bank of Industry, BOI, for local miners to access the fund, and integrate
them into formal sector.
He
explained, “We are in the first instance launching a N5 billion fund, with our
ministry’s pilot contribution of N2.5 billion, while BOI will support with
another N2.5 billion.”
According to
him, with the agreement, we appoint the bank as Custodian and manager of the
Nigerian Artisanal and Small-Scale Miners Financing Support Fund for mining
projects.
“The loans
would be made available to certified industry participants at a single digit
interest rate of 5 percent per annum, which is by far about the most attractive
within our jurisdiction”, he added.
The minister
further disclosed, the single obligor limit of loans to be granted under the
Fund should be from N100, 000 to N10million for artisanal miners, and
N10million to N100 million for small-scale miners.
He expressed
delight that Solid Minerals Development Fund, SMDF is now spearheading sourcing
of a $600million investment fund for the sector, judging, in 2015,out of N1
billion allocated to the ministry, only N352 million was released.
Dr. Fayemi
commended BOI, saying, “we consider her dependable partner who share our vision
and we trust that it would bring their pedigree to bear on this initiative as
foremost specialized bank set up to pursue economic development.”
Responding,
the Managing Director/CEO, Bank of Industry [BOI] , Olukayode Pitan called on
beneficiaries not to see the grant as free money that could be used for other
purposes rather than what it is meant for.
Pitan listed
the benefits of the grants to include, that of revenue generation, employment
creation and capacity building among others.
According to
him, before the grants would be released to the target small scale miners, they
must pass through the internal mechanism of the Bank.
The loans,
which are expected to be paid within one year has single digit interest rate.
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