Dr. Oladele Alake, the Minister of Solid Minerals Development, proposed that mineral-rich African nations leverage their verified mineral reserves as equity in joint ventures rather than resorting to loans that could further burden their populations. This recommendation was put forward during his speech at the Ministerial Roundtable on Powering Africa in Washington DC, as conveyed in a statement released by Segun Tomori, the Special Assistant on Media to the Minister of Solid Minerals Development.
Alake stressed the superiority of in-situ equity in the mining sector, wherein the confirmed value of unextracted minerals serves as equity in joint ventures. He cautioned against the aggressive tactics of loan marketers pressuring African governments to accumulate more debt, emphasizing the importance of scrutinizing loans thoroughly to ensure they can be self-liquidating through their returns, thus safeguarding the populace from poverty.
Drawing on his journalistic background, Alake criticized African governments’ tendency towards reckless borrowing habits, particularly highlighting Nigeria’s quick acceptance of loan agreements with unfavorable terms for its citizens. He urged African governments to exercise patriotic circumspection and due diligence before committing their sovereignty to such agreements.
During the conference, Alake engaged in constructive discussions with potential investors, including representatives from the United States International Development Finance Corporation (IDFC). He presented initiatives aimed at boosting Nigeria’s mining sector and attracting investments, focusing on diversifying away from oil reliance, improving data collection, and ensuring a secure mining environment. Alake also highlighted Nigeria’s wealth of 44 critical minerals and ongoing efforts to reform the sector to attract major investors.
Agnes Dasewicz, the COO of US IDFC, acknowledged the potential in Nigeria’s solid minerals sector and affirmed her corporation’s commitment to fostering growth in the mining industry. Future collaborations between the Minister’s team, including the Solid Minerals Development Fund (SMDF), and the US IDFC are under consideration.
Alake also engaged with various private sector representatives, such as KRL International, to further their interest in Nigeria’s mining industry.
