Alake Advocates For Mineral Equity To Avoid Debt Trap

The Minister of Solid Minerals Development, Dr. Oladele Alake has urged mineral-rich African countries, to use the proven mineral reserves of their countries as equity in joint ventures instead of taking loans that worsen the plight of their people.

Speaking at a ministerial roundtable on Powering Africa in Washington DC recently, Alake deplored unwholesome pressure on African governments by loan marketers despite global concerns over the declining capacity of many countries to settle their debts, according to a press release by the Special Assistant (Media) to the minister, Segun Tomori on Tuesday.

His words: “It is an interesting paradox that despite their chronic indebtedness, African countries remain the target of institutional and private loan sharks marketing short and long-term credit to ministries, departments and agencies.

Indeed, in the first month after a Minister is sworn into office, he is bombarded by these marketers promising above-the-table and under-the-table deals.”

Alake, who doubles as the Chairman of the African Minerals Strategy Group, the body of ministers of mining and mineral development in Africa, canvassed an alternative to loans, which he defined as using proven mineral reserves as equity.

Speaking at a ministerial roundtable on Powering Africa in Washington DC recently, Alake deplored unwholesome pressure on African governments by loan marketers despite global concerns over the declining capacity of many countries to settle their debts, according to a press release by the Special Assistant (Media) to the minister, Segun Tomori on Tuesday.

His words: “It is an interesting paradox that despite their chronic indebtedness, African countries remain the target of institutional and private loan sharks marketing short and long-term credit to ministries, departments and agencies.

Indeed, in the first month after a Minister is sworn into office, he is bombarded by these marketers promising above-the-table and under-the-table deals.”

Alake, who doubles as the Chairman of the African Minerals Strategy Group, the body of ministers of mining and mineral development in Africa, canvassed an alternative to loans, which he defined as using proven mineral reserves as equity.

According to him, the administration has focused on developing the critical minerals sector to diversify the economy from oil.

“There are certain things that we need to bolster that sector, and all the support we can get is crucial. First and foremost is critical big data, which is exploration. We are actively working to sanitise the sector, including establishing a new security architecture to secure the mining environment. ” he said.

Speaking further at the parley with the Chief Operating Officer (COO) of the US IDFC, Agnes Dasewicz and her team, Alake stated that Nigeria has an abundance of 44 critical minerals that exist in commercial quantities, emphasising ongoing reforms by President Tinubu’s administration are poised to sanitise the sector and make it attractive to big players.

In her submission, Dasewicz lauded the renewed focus on solid minerals by Nigeria, emphasising her corporation’s interest in providing the required support to strengthen the mining sector value chain.

“We very much partner with private sector players to deliver financing to mining companies to help them expand what they can do. Some of the focus sectors that we have are critical minerals and infrastructure; health and agriculture as well as energy. We would love to do more in the critical minerals sector, and we know there is a lot of potential in that regard, in Nigeria,” Dasewicz added.