First Bank Says It Can Offer Miners Banking Solutions Beyond Loans

 

Omohglobal

First Bank of Nigeria has reiterated its commitment to support the mining sector development and growth as part of an effort to diversify the nation’s economy.

Speaking during the Nigeria Mining Week in Abuja, the group head, Corporate Banking, Energy (Upstream and midstream), First Bank, Temitayo Osundosumu stated that the mining industry is a growing industry which requires all the resources it can get.

He said, ‘‘First Bank is open for business and will always support the mining sector. So, we are keen to do it. We have the expertise and we will support the mining industry in Nigeria.

‘‘We want the miners to speak with us. Most of the time it is not always loans they need, it could be banking solution, discussing with other partners on new finances, among others. We have done this across our footprints in Africa and we are keen to doing it in Nigeria.’’

On how to structure the industry, Osundosumu noted that the Ministry of Mines and Steel Development has been taking a lot of steps in that direction as artisans and small-scale miners are being put together in a well-organized manner.

‘‘A good one is the Solid Minerals Development Fund which is a way to de-risk all the issues in the mining industry with the bid that banks funding will be applicable to it and can take the industry forward,’’ he said.

In her remark, Fatima Umaru Shinkafi, Chief Executive Officer of Solid Mineral Development said that although the mining industry in Nigeria is 70 percent artisanal, the miners would be more productive if they can be well structured.

Shinkafi, speaking on accessing funds from banks, said, ‘‘Banks will only give you funding based on your cash flow. You need to have a product that is viable and your firm must have a good corporate governance structure. Mining is a science. You must develop data for future funding.’’