(Ecofin Agency) - The Federal Government is currently collaborating with the Nigerian Sovereign Investment Authority (NSIA), the Nigerian Stock Exchange (NSE), amongst others, to assemble a $600 million investment fund for the mining sector, Acting President, Yemi Osinbajo (photo), revealed on Tuesday. This aims to remove all bottlenecks discouraging investment in the sector.

“The mining sector is a priority for the Nigerian government and a crucial part of our economic growth and diversification agenda. We have also secured funding from both domestic and international sources for investment in the solid mineral industry,” he said.

Speaking at the ongoing three-day mining summit in Abuja, Osinbajo explained that the Ministry of Mines and Steel Development has been allowed access to the mining sector section of the government’s natural resources development fund, for a sum of $100m. According to him, the move is part of measures to provide cheap loans and grants to participants in the industry and also for directly investment in foundational infrastructure.

He said the mining sector is a main concern for the Nigerian government and also an essential part of the country’s economic growth and diversification agenda. He expressed confidence that with recent launch of the Economic Recovery and Growth Plan, the country will be able to achieve its target of 7% economic growth rate by 2020, with more aggressive growth rate of 8.54 percent for the mining sector.

The sector will contribute $27 billion to the country’s GDP by 2025, the Acting President added.

Anita Fatunji