According to consistent press reports, a MoU was signed between the Federal Industry of Mines and Steel Development and the Bank of Industry. 



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Vanguard. 2017.FG BoI signs N5bn MoU to boost miners’ operations. English.

This Day Live. 2017.FG, BoI Launch N5bn Funding Support for Artisanal, Small Scale Miners.

Premium Times. 2017.Nigerian govt launches N5 billion loan for small-scale miners.

Inception date: 29 Aug 2017 | Removal date: open ended
Still in force

State loan

The Federal Industry of Mines and Steel Development, on 29 August 2017, signed a Memorandum of Understanding with the Nigerian-based Bank of Industry. The core scope of this MoU is the establishment of a fund of a financial value of N 5 billion (circa USD138 million). The established fund aims to provide financing to local Nigerian artisanal and small-scale miners in their projects associated to industrial minerals, precious metals, precious stones, dimension stones as well as other metals and minerals that are deemed to be strategic for the Nigerian economy (these other metals and minerals are not specified in the official sources).

Specifically, the mining beneficiary firms of this fund will be able to access loans amounting from N 10 million (circa USD 27 thousand) to N 100 million (circa 278 thousand), at favourable interest rates of 5%, for financing :

  • the purchase of requisite items of plant and machinery,
  • drilling payments,
  • geological and other unspecified services.

According to press sources, small-scale and artisanal mining firms represent 80% of the mining activities in Nigeria.

The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.