Buhari Demands Progress Report On Solid Minerals Development Fund

30 Dec Buhari Demands Progress Report On Solid Minerals Development Fund

President Muhammadu Buhari has directed members of the Presidential Artisanal Gold Mining Development Initiative (PAGMI) to provide a six-month progress report on the Solid Minerals Development Fund.

He gave the directive on Wednesday at a briefing by the PAGMI steering committee and management team at the State House, Abuja.

A statement Spokesman Femi Adesina said the directive is to further ensure probity and best practices in the mining sector.

The president charged the team to scale up operations in the mining sector by ensuring that investments go beyond artisanal and small scale levels.

“The PAGMI management team should now develop innovative ways to move PAGMI to the next level to ensure the Nigerian mining story goes beyond artisanal and small-scale mining.

“I support the steering committee’s target of aggregating 3-5 tons of gold over the next 12 months, as this will deliver tremendous fiscal and economic benefits to the nation. The Solid Minerals Development Fund should work with all relevant government agencies to identify the support and funding needed to deliver on this aggregation target.

“Now that you have successfully delivered a pilot scheme in Kebbi state, it is time to roll out and expand sustainably across other states. The government is committed to providing all the necessary support required,” he said.

The president urged PAGMI members to ensure that the Fund fast-tracks delivery of other directives to support the presidential fertilizer initiative.

He charged all stakeholders to conclude ongoing assignments of recommending a portion of accruals to the Fund.

“The dedication of a portion of accruals to create a sustainable income stream for the Solid Minerals Development Fund is essential to delivering the mandates assigned to the Fund. The development of a sustainable stream for the Fund will conclude the implementation of the Fund’s Establishment Act, which is a key focus area for this Administration.

“This initiative is of great pride to me because through our intervention we can reach hardworking Nigerians in the field, toiling and the quarries under the sun trying to earn an honest living.

“We have been able to protect them from clutches of those who exploit their hard labor, while simultaneously bringing them into the value chain to earn improved income from their hard work. I expect a six-month progress report that will clearly show significant progress by scaling up the program from its current pilot stage,” he added.

He commended the PAGMI’s steering committee and management team for doing such a good job.

“I am particularly pleased with the coordination and integration aspects of the document,” he said.

“I want to commend the Central Bank Governor for his support of the Solid Minerals Development Fund in the delivery of PAGMI, particularly in the commitment to paying a fair price to support the artisanal miners and providing a market for PAGMI. The Honourable Minister of Finance, Budget, and National Planning is to be commended also for her support in increasing the capitalization of PAGMI through the already approved facility,” he said.

In his remarks, Dr Uche Ogar, the Minister of State, Mines and Steel Development, who led the delegation, said since the validation of the initiative by the president “to address the structural and institutional factors such as rural poverty and lack of alternative livelihood, and difficulty in meeting legal and regulatory requirements that tends to push artisanal gold mining operators deeper into the informal economy,” PAGMI has created the opportunity for formalization and mainstreaming of artisanal miners, giving them the economic opportunity to live.

He said between 2012 and 2018, $5 billion in gold was illegally smuggled out of Nigeria.

The Executive Secretary/Chief Executive Officer of the Solid Mineral Development Fund, Hajiya Fatima Umaru Shinkafi requested the president to, among others, increase the capitalisation of the Fund in order to extend to other states requesting its intervention which will enable the committee meet up with its 5-ton target; order an intervention by the Central bank of Nigeria (CBN) to minimize losses by artisanal miners as a result of foreign exchange differentials; declare a ban on artisanal export of gold for at least one year to give PAGMI a chance to checkmate the smuggling activities and give a temporary waiver on royalties presently set at about three percent.

Shinkafi called for support of the funding of targeted explorations to catalyse private sector investment and transform PAGMI into a large scale operator in order to sustain the initiative.

She added that the Responsible Mining Framework, presented by the Steering Committee meets international standards, and was produced in conjunction with other stakeholders like NEITI, EFCC and the Nigerian Customs Service.