Nigeria, NEXIM partner on mining sector
The Federal Government of Nigeria has announced a partnership with the Nigerian Export-Import (NEXIM) bank over the mining sector.
The collaboration between NEXIM bank and Solid Minerals Development Ministry aims at addressing logistical challenges hindering the export of solid minerals. During a meeting with the Managing Director of NEXIM Bank, Abba Bello, the Minister of Solid Minerals Development, Dr. Dele Alake, commended the bank for its efforts in utilizing financial tools to support the mining industry but emphasized the need for further action.
Bridging financing gap
Dr. Dele Alake highlighted the critical role of NEXIM Bank in bridging the financing gap for local mining investors. He emphasized the importance of minimizing logistical bottlenecks for solid minerals exports and increasing access to funding and mining equipment for local investors.
Abba Bello briefed the Minister on NEXIM Bank’s mining support scheme, which aims to provide capital to local mining companies, offer credit enhancement instruments to mitigate project risks, and attract investments to boost the mining sector’s contribution to Nigeria’s GDP and exports. The scheme includes frameworks for equipment leasing, contract mining, and buyer’s credit/Export Credit Agency (ECA) financing to support various aspects of mining operations.
In addition to financial support, NEXIM Bank has also undertaken initiatives to address logistical challenges related to solid minerals exports. Abba Bello mentioned the successful survey and charting of the lower River Niger, which has improved navigation and capacity to transport bulk solid minerals through terminals like Ajaokuta and ports like Burukutu.
