You are here: HomeNews2021 12 30Article 510685

General News of Thursday, 30 December 2021

Source: www.sunnewsonline.com

Buhari demands progress report on solid minerals devt fund, orders ramp up of operations

President Muhammadu Buhari President Muhammadu Buhari

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

The fund is designed to capture accruals from investments and the president said the progress report would further ensure probity and best practice in the mining sector.

Special Adviser to the President on Media and Publicity, Femi Adesina, in a statement, said Buhari, who was briefed by the PAGMI steering committee and management team at the State House, also charged the team to scale up operations in the mining sector by ensuring investments go beyond artisanal and small scale levels.

He said: “PAGMI management team should now develop innovative ways to move it 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 SMDF 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.”

President Buhari urged PAGMI to ensure SMDF fast-tracks delivery of other directives to support the Presidential Fertilizer Initiative.

He said all stakeholders should conclude the ongoing assignment of recommending a portion of accruals to be dedicated to the SMDF.

“The dedication of a portion of accruals to create a sustainable income stream for the SMDF is essential to delivering the mandates assigned to the fund. The development of a sustainable funding 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 labour, 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 programme from its current pilot stage,” he said.

President Buhari commended PAGMI’s steering committee and management team under the leadership of the Chief of Staff, Ibrahim Gambari, as chairman and Kebbi State Governor, Abubakar Atiku Bagudu, as vice chairman for doing a good job.

The president said the responsible mining framework that was presented would result in an effective and transparent gold supply chain and demonstrate efforts to combat money laundering, terrorist financing, human rights abuses, and respect for the environment.

“I am particularly pleased with the coordination and integration aspects of the document.

“I want to commend the Central Bank of Nigeria (CBN) governor for his support of the SMDF 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 minister of Finance, Budget, and National Planning is to be commended also for her support in increasing the capitalisation of PAGMI through the already approved facility.”

Minister of Mines and Steel Development, Uche Ogar, 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 had created the opportunity for formalisation and mainstreaming of artisanal miners, giving them the economic opportunity to live.

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

Executive Secretary/Chief Executive Officer of the Solid Mineral Development Fund, Fatima 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 five-ton target; order an intervention by the CBN to minimise 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 per cent.

Shinkafi called for support of the funding of targeted explorations to catalyse private sector investment and transform PAGMI into a large scale operator 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 Nigeria Extractive Industries Transparency Initiative, Economic and Financial Crimes Commission and the Nigerian Customs Service.

According to her, it is believed the document will eliminate criminality, lead poisoning, child labour, sabotage in the economy and terrorism financing.

The committee had, in 2020, presented the first-ever artisanal gold mined and sourced within Nigeria to the president.

Join our Newsletter!