The Chairman of the Ore Reserves Development Forum (ORDF), Uba Saidu Malami, has reaffirmed that Nigeria's mining sector possesses tremendous potential to drive the nation's economic growth if critical challenges in project financing and geological data transparency are effectively resolved.
Addressing the Funding Gap in Mining
Despite Nigeria's abundant mineral resources spread across the country, Malami noted that numerous viable mining projects continue to face difficulties in attracting necessary investments. The primary obstacle remains the limited trust among financiers in the geological and project information presented to them.
Malami disclosed this information in a statement ahead of a crucial one-day workshop organized jointly by ORDF and the Solid Minerals Development Fund (SMDF). The event, themed "Building a Sustainable Mining Finance Framework for Nigeria," is scheduled to take place on December 9 at the Shehu Musa Yar'Adua Centre in Abuja.
Building Trust Through Transparency
"The mining sector can make a significant contribution to Nigeria's economic growth," Malami emphasized. "However, many promising projects fail to attract funding because investors do not fully trust available geological data."
He explained that the workshop aims to create a platform where stakeholders can collaborate to establish a transparent and reliable system that will support investment and foster long-term sector development. The event specifically targets one of the sector's most significant bottlenecks: access to finance.
Miners, particularly those in early exploration stages, often encounter challenges securing funding due to weak reporting systems, poor data quality, and limited investor confidence in mining projects.
Comprehensive Stakeholder Engagement
The workshop will bring together diverse stakeholders from across the mining ecosystem, including miners, financial institutions, regulators, government agencies, and technical experts. Participants will engage in high-level discussions covering several critical areas:
The role of mining finance in Nigeria's industrial development will be a key focus area, alongside fundamental standards for reporting mineral resources. The event will also explore financing pathways from exploration to production stages.
Additional discussion points include policy, regulatory, and market incentives for mining, as well as designing a practical and efficient mining finance system tailored to Nigeria's specific needs.
Early-stage miners will benefit from learning about reporting and data requirements necessary to access finance, while also understanding how to prepare for due diligence as their projects advance.
Expected Outcomes and Future Impact
Organizers anticipate several significant outcomes from the workshop, including clear identification of constraints limiting mining finance in Nigeria and improved understanding of financial institutions' role in the mining sector.
The event aims to produce recommendations for incentives that reduce risks for both miners and investors, while also building consensus on standardized reporting systems and frameworks.
Perhaps most importantly, participants will develop a draft Mining Finance Framework that will be refined by a technical working group representing key institutions across the mining value chain.
This upcoming workshop is expected to play a pivotal role in shaping Nigeria's mining investment landscape as the country intensifies efforts to diversify its economy away from oil and unlock the full value of its solid minerals sector.
