First Bank Reinstates Commitment To Funding Of Mining Sector

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

The group head, Corporate Banking, Energy (Upstream and midstream), First Bank, Temitayo Osundosumu stated this during a panel discussion at the Nigeria Mining Week in Abuja. The three-day event from November 1-3, which took place at the International Conference Center (ICC), has the theme ‘Profiling Nigeria’s Strengths: Achievements And Focus Areas’.

Osundosumu said that the mining industry is a growing industry and that First Bank will aways support it. 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 to 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 for starters. According to him, artisans and small-scale miners are being put together in a well-organised 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.

Also, the executive secretary /chief executive officer of the Solid Mineral Development Fund, Hajiya Fatima Umaru Shinkafi, who was a member of the panel of discussants, said that although the mining industry in Nigeria is 70 per cent artisanal, the miners can be more productive if they can be structured. Advising miners who are looking for funding from banks, she said, ‘‘Banks will only give you funding based on your cashflow. 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.’’