Reps propose establishment of Nigerian Mining Development Bank
The proposal to establish the Nigerian Mining Development Bank (NMDB) has progressed to the next stage within the House of Representatives. Uchenna Okonkwo, a legislator representing the Idemili North and South federal constituency of Anambra state, has sponsored the bill. The primary objective of this bill is to establish a bank that will provide financial assistance, promote investment, and foster sustainable development within the mining sector.
The mining industry in Nigeria is facing numerous challenges, including the prevalence of illegal mining activities that contribute to insecurity. Dele Alake, the Minister of Solid Minerals Development, stated in December 2023 that influential Nigerians are involved in this illicit mining, further alleging their involvement in funding criminal activities such as banditry.
During the deliberation in the green chamber, Okonkwo underscored the pivotal role that the bill, once passed, would play in reshaping Nigeria’s mining sector. He emphasized the transformative potential of this proposed legislation in shaping the nation’s economic landscape.
Okonkwo outlined seven key points on which the bill is founded, highlighting its commitment to economic transformation, the promotion of investment and expertise, and the assurance of sustainable development and environmental responsibility. He also emphasized the provision of financial support to individuals, cooperatives, and companies engaged in mining activities to ensure fair access to credit facilities.
Ahmed Jaha expressed his support for the bill, describing it as one of the best legislative proposals presented in the house. He stressed the need to decrease Nigeria’s dependence on a singular source of income by making substantial investments in the mining sector.
Gaza Gbefwi also underlined the significance of the bill in Nigeria’s development, recognizing the complexity of the solid mineral sector and the necessity for a specific purpose vehicle to address its intricacies and risks.
Subsequent to the debate, the bill received unanimous support during a voice vote presided over by Tajudeen Abbas, the Speaker of the House of Representatives.
The establishment of the Nigerian Mining Development Bank carries the potential to stimulate growth in the mining sector, attract local investments, and deter the exploitation of resources by foreign multinational corporations. This initiative has the capacity to provide essential financial support and infrastructure to unlock Nigeria’s extensive mineral wealth and promote sustainable development.
