SEC, FMMSD seek to raise capital for non-oil sector

The Securities and Exchange Commission (SEC) and the Capital Market Community are to partner with the Federal Ministry of Mines and Steel Development and other stakeholders to promote the use of alternative means of raising capital such as Non-Interest products, tokenization of assets, as well as adopting technologies such as FinTech. This among others was contained in a communiqué issued at the end of a two-day workshop on financing the Nigerian solid minerals sector through the capital market and the critical role of the commodities exchanges. The workshop also emphasised the need for the FMMSD and Federal Ministry of Education to re-prioritize the focus on STEM education at basic, secondary and tertiary institutions.  According to the communiqué, “There is a need for the Capital Market Community to ensure that the market infrastructure that supports the bringing to market of mining ventures is in place, while also protecting investors.  “All stakeholders should be involved in promoting sustainable practices and ESG standards within the mining industry while the FMMSD is to ensure the availability of geoscience data, given that it is essential alongside relevant market data in enabling intermediaries and commodities exchanges to structure products for the mining industry.  The participants also agreed that the FMMSD should collaborate with SEC and other stakeholders to develop capacity in the industry and address the issue of interference in mining activities by the State Government, which is identified as a major challenge faced by mining companies, the FMMSD is to take concrete steps to resolve the conflict in State and Federal laws as well as overlapping oversight. Earlier in a keynote address, the Executive Commissioner Operations of the SEC, Mr. Dayo Obisan said the solid minerals sector possesses immense transformative potential for sustainable economic growth in Nigeria and holds immense potential to contribute significantly to national economic diversification and sustainable development goals.  “With over 44 minerals discovered across the Federation, the mining industry can play a vital role in diversifying our economy away from crude oil dependency. The FMMSD has embarked on various initiatives to increase the sector’s contribution to Nigeria’s GDP from 0.5% to approximately 3% by 2025. To address the financing challenges faced by the mining industry, the SEC Commissioner said stakeholders must recognize the crucial role of the capital market in providing much-needed funding for large-scale mining projects as the capital market offers a wide array of financial instruments and products, attracting long-term investments and diversified sources of funding.  He said by tapping into this market, mining companies can strengthen their financial position and promote transparency, accountability, and good corporate governance practices to attract both domestic and foreign investors, stimulating investment inflows and fostering growth in the sector. He stated that to address these challenges, some practical solutions may include, but not limited to; attracting strategic investors who have established mining operations can bring expertise, technology, resources, and access to international markets. Such partnerships can be in the form of equity capital or debt financing, allowing miners to benefit from immediate cash injections and technology support.

Perm Sec pledges to strengthen mines, steel development

The new Permanent Secretary, Ministry of Mines and Steel Development, Dr Mary Ogbe, has pledged to strengthen the mines and steel industry in Nigeria by providing solutions to existing challenges. Ogbe made the commitment in Abuja on Friday, at a valedictory session organised by the ministry for the former Permanent Secretary, Dr. Oluwatoyin Akinlade. She called on the staff to support her to achieve the mandate and objectives of the ministry. “I am ready and committed to strengthening the ministry toward proferring solutions to the challenges facing the nation. “Therefore, all hands must be on deck as the nation looks up to the ministry in solving its socio-economic problems,” she said. The permanent secretary said she would run an open door policy, to enhance consultations for the effective and efficient running of the sectors. Ogbe said that her target was to ensure the holistic exploitation of available minerals to diversify the nation’s economy. Earlier, Akinlade described Ogbe as a seasoned administrator with an impressive track record of delivering high-quality performance. She pledged her unalloyed support for the growth of the ministry as well as promoting the mining industry. The former permanent secretary called on the management and staff of the ministry to assist Ogbe in discharging her duties and completing of outstanding projects. She said that the projects would create wealth and jobs for the teeming youths and generate revenue for the nation. Also, the Director, Human Resources, Dr Mohammed Suleiman expressed the readiness of the ministry’s workforce to work efficiently with the new permanent secretary. Suleiman said that they were committed to taking the ministry to higher heights and boost the economy. He thanked Akinlade for her immense contributions to the successes recorded by the ministry, especially the growth of the mining industry in the country. The ministry at the occassion, unveiled its Electronic Document Management System (EDMS), which would store, organise and manage official documents electronically and enhance performance.