Viable market can boost solid mineral dev’t – Sekibo

MD/CEO of Heritage Bank Plc, Ifie Sekibo, has said that market formation framework is the key to optimally exploit Nigeria’s precious metal and solid minerals endowments.

He disclosed this during a webinar organised by the Securities and Exchange Commission (SEC) in collaboration with the Federal Ministry of Mines and Steel Development with the theme, “Financing the Solid Minerals Sector through the Capital Market and the Critical Role of Commodity Exchanges.”

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Sekibo explained that a fully established market formation process would lead to having a corporation as an integrated solid mineral institution like NNPC which allows the collateralisation of assets that banks can rely on for alternative funding options.

He said this will guarantee other creative ways of raising funds for financing commercial activities relating to solid minerals and viable projects along its value chain.

Sekibo who was represented by the Divisional Head, Strategy and Business Solutions of the Bank, Olusegun Akanji, said for the sector to be viable, it requires lots of converged government interventions because for any development-focused sector to kick off around the world, it needs government intervention to lay the foundation for the private sector and funders to step in and pool their resources.

“Once we can collateralise these assets, whether they are under the ground or being determined, you use different instruments to bring liquidity into them. Then investors will follow up, and  once we have established there is enough they can explore,” the MD added.

“Once banks start injecting their resources, customers would certainly follow that trend. You can start arranging for sophisticated solutions like bonds, bullion backed assets and pension notes.”