*Dr. Oladele Alake, Minister for Solid Minerals Development, at a recent forum in Washington, D.C., United States, urges mineral-rich African countries to use their proven mineral reserves as equity in joint ventures, instead of taking loans that worsen the plight of their people

Isola Moses | 绿帽献妻

Dr. Oladele Alake, Honourable Minister for Solid Minerals Development, has urged mineral-rich African countries to use the proven mineral reserves of their countries as equity in joint ventures, instead of taking loans that worsen the plight of their people.

Speaking at a Ministerial Roundtable on Powering Africa in Washington D.C., United States (US), recently, Dr. Alake deplored unwholesome pressure on African governments by loan marketers despite global concerns over the declining capacity of many countries to settle their debts.

Segun Tomori, Special Assistant to the Minister on Media, in a statement Monday, March 11, 2024, quoted Alake as saying: “It is an interesting paradox that in spite of their chronic indebtedness, African countries remain the target of institutional and private loan sharks marketing short and long-term credit to ministries, departments and agencies (MDAs).

“Indeed, in the first month after a Minister is sworn into office, he is literally bombarded by these marketers promising above the table and under the table deals.”

The statement also noted the Nigerian Minister, who doubles as the Chairman of the African Minerals Strategy Group, the body of ministers of mining and mineral development in Africa, canvassed an alternative to loans, which he defined as using proven mineral reserves as equity.

“In the mining sector, in-situ equity, where the verified value of unextracted minerals can be the equity of the owner in joint ventures, is a better financial arrangement than the road to chronic indebtedness,” said he.

Alake recalled how he had taken issues with indiscriminate loan deals of African governments as a journalist.

According to him, only loans that can be liquidated by the returns on the project should be taken to save the people from poverty.

The Minister further stated: “I have criticised the predilection of governments in Nigeria to sign the dotted lines of loan agreements on the flimsiest excuse mostly with stiff conditions, which hurt the common people.

“Therefore, I believe African governments should exercise patriotic circumspection and due diligence before committing their sovereignty.”

Alake’s presentation, the media aide said, set the tone of his meetings with investors on the sidelines of the conference in the US.

In top-level talks with the delegation of the United States International Development Finance Corporation (IDFC), he equally shared the vision of the Bola Ahmed Tinubu Administration to reposition the sector to compete with others to attract investments.

According to him, the administration has focused on developing the critical minerals sector to diversify the economy from oil.

Alake asserted: ,”There are certain things that we need to bolster that sector, and all the support we can get is crucial .

“First and foremost is critical big data, which is exploration. We are actively working to sanitise the sector, including establishing a new security architecture to secure the mining environment.”

Nigeria has 44 critical minerals in commercial quantities, says Minister

At the parley with Agnes Dasewicz, Chief Operating Officer (COO) of the US IDFC, and her team, Alake also disclosed that Nigeria has an abundance of 44 critical minerals that exist in commercial quantities.

He as well emphasised on-going reforms by President Tinubu’s administration are poised to sanitise the sector and make it attractive to big players.

In her submission, Dasewicz lauded the renewed focus on solid minerals in Nigeria.

She stressed her corporation’s interest in providing the required support to strengthen the mining sector value chain.

The COO of IDFC stated: “We very much partner with private sector players to deliver financing to mining companies to help them really expand what they can do.

“Some of the focus sectors that we have are critical minerals and infrastructure; health and agriculture as well as energy.

“We would love to do more in the critical minerals sector, and we know there is a lot of potential in that regard, in Nigeria.”

To execute areas of partnership, further engagement will continue between the Minister’s team comprising Solid Minerals Development Fund (SMDF) Executive Secretary, Fatima Shinkafi, other top ministry officials and representatives of the US IDFC.

The Minister also had fruitful deliberations with a cross section of private sector players in the mining industry, including KRL International, securing their commitment to take more than a cursory look at the mining sector.

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