Abuja: Stakeholders in the mining sector have called for stronger inter-agency collaboration to unlock financing for small-scale mining. They made the call during a panel session at the 10th edition of Nigeria’s Mining Week, themed ‘Nigeria Mining: From Progress to Global Relevance’, in Abuja. The discussion, titled ‘Unlocking Small-Scale Mining Finances: The Missing Link between Exploration and Production’, explored innovative financing solutions for holders of Small-Scale Mining Leases (SSML).

According to News Agency of Nigeria, Mrs. Amina Sijuwade, Director of Iron Ore Mining Limited, acknowledged the difficulties SSML operators face in accessing finance and emphasized that stronger collaboration would improve their ability to secure funding. Sijuwade explained that holders of SSML often access funding through cluster financing models. She highlighted the need for catalytic funding, which involves initial financial support from the government or investors to strengthen SSML operations and attract additional investment into the sector.

Mrs. Sijuwade further noted that relevant government agencies should harmonize policies to reduce mining risks, a critical requirement in strengthening lenders’ confidence in financing the sector. She pointed out that many financial institutions lacked an understanding of how the mining sector operates, which complicates the design of suitable funding provisions.

Mr. Abubakar Bello, Managing Director of Nigerian Export-Import Bank (NEXIM), added that the sector is considered high-risk, making financial institutions hesitant to extend credit facilities. Bello highlighted that policy consistency and sector regulatory clarity are essential to attracting funding through investments. He stressed that investors need predictability in their investments and that nobody would invest where there is high risk.

Mr. Akinrogunde Akintunde, Director of the Department of Artisanal and Small-Scale Mining at the Ministry of Solid Minerals Development, remarked that while the sector has policies in place, more strategies are necessary to improve access to funding. Akintunde identified the lack of information exchange between financiers and miners as a significant factor limiting access to funding. He advised miners to specialize in specific areas of the mining value chain, noting that such focus could enhance their eligibility for financing opportunities.