By Shakirudeen Bankole/ Ibadan
Contrary to popular insinuations that lack of funding is the bane of the Nigerian Solid Mineral sector, experts in major financial Institutions have revealed that funding is actually available and in sufficient proportion.
The revelation came at the opening ceremony of the 3rd edition of the Nigeriam Gemstone and Jewelries Expo 2025, held at the International Conference Center of the University of Ibadan, Oyo State.
With the Theme: “Financial Sustainable Practices in Gemstone Mining, Jewelries, and Processing, and Marketing,” the conference was organised by the Gemstone Miners Association (GMMA).
Speaking at the conference, financial experts however said the needed funding for local businesses is only accessible to serious companies who are able to meet certain preconditions.
Biodun Dairo, the Export Manager for Providus Bank Plc, said the conditions are deliberately made strict so as to gatekeep the process and ensure only the credible businesses with long-term agenda, benefit the funding.
According to him, the funding is conditioned on: Business Structure, Record Keeping, Financial Transparency, and Long-term Planning.
He said for the Mining and Mineral Processing Businesses in Nigeria to take full advantage of the resource, they need to demonstrate beyond reasonable doubt that they are indeed in the business on a long-term basis.
“If you want funding, we will access and review your business profile, thoroughly. We will look critically at your records, finances, planning, and risk portfolio,
‘And why we are doing this is to ensure that the funding is only allotted to the right business with the right owner,” he explained.
Oni also explained that unlike the practices in the past, financial institutions are no longer interested in accepting just any proposals.
Oni explained that there are also foreign loan at a single digit interest rate that can be facilitated by his bank for miners and mining processing companies, if they are able to put their records together.
“There are several layers of funding supports besides the financial institutions. There is funding at the Inter-Bank level. There is funding at the Central Bank level, which serves as the last base for rescue for financial institutions. And there is the international funding through licensed financial portfolios. We can help you with all of these,” Oni told the Gemstone experts.
He stated that another important condition to access the funding is to provide security, otherwise known as collateral, in Gemstone Asset.
He said the usual practice of collecting all sort of solid asset as collaterals for substantial loans are part of the reasons why financial institutions hit the dead end and become defunct.
“This time around, you have got to loosen up and practice some principle of flexibility. The banks that are willing to give these funds are also interested in being part of the business. This is the only way to mitigate the risk involved,” he added.
The conference had in attendance big names in the sector, led by the Minister of Solid Mineral Development, Dr. Dele Alake, who was represented by an Assistant Director from the Ministry, Mr. Umuoakpa Etodo; Chief Dele Ayanleke, the National President of the Miners Association of Nigeria, and the host, Engineer Adeniran Ajibafe, the President of the GMMA.
