- Special Purpose Vehicle (SPV) for management of mining operations underway
The Minister of Solid Minerals Developent, Dr. Dele Alake Friday hosted a delegation of the Bureau of Public Enterprises (BPE) led by its Director-General, Dr. Alex Okoh.
The BPE DG leading the presentation asserted that the agency’s purview encompasses optimization of assets across government ministries and parastatals either by way of divestment, privatization, concessioning and in some cases sector reforms.
“Our activities cut across various ministries of government, and when the new administration came in, we thought it proper to brief the relevant ministers on the cross-cutting issues and activities of the Bureau that affects the ministries The ministry of solid minerals being one of the key partners in the reform activities that we carried out, we thought it was important for us to have this meeting and conversation, “Dr. Okoh asserted.
The Minister welcomed the BPE delegation and expressed the commitment of the ministry to partner with the Bureau in fulfilling its objectives. In response to a suggestion of Dr. Okoh, on the essence of a Special Purpose Vehicle (SPV), Alake hinted about the imminent establishment of an SPV for the investment, regulation, and management of mining operations in the country.
” The structure of our SPV will be substantially private sector driven. Host communities will also be given equity to give them a sense of belonging so they can protect the operations to reduce the frictions that we currently contend with. We will also let members of the public own equity to give the company considerable Nigerian local content. However, the private sector will own the largest equity to insulate the SPV from future government interference, “Alake enthused.
Dr. Okoh made a case for collaboration with the ministry in the structure and operational model of the SPV, while the Minister responded that recommendations of BPE should be submitted in the form of a proposal for review.
A joint technical committee to devise implementation strategy for the establishment of the SPV was set up.
Segun Tomori
Special Assistant on Media to the Minister of Solid Minerals Development.
20th October, 2023.