Nigeria Moves Forward with Plans to Establish Mining Development Bank
The Nigerian House of Representatives in Abuja achieved a noteworthy triumph yesterday following the approval of a bill for an Act to establish the Nigerian Mining Development Bank (NMDB) for a second reading.
During the plenary session, Hon. Uchanna Okonkwo, the bill’s sponsor, advocated for the NMDB, underscoring the necessity for financial support, investment promotion, and sustainable development within the mining sector. This initiative is regarded as a crucial stride towards tackling the sector’s challenges.
An important issue highlighted was the inadequacy of financial resources for mining projects in Nigeria. The establishment of a specialized mining development bank is expected to offer customized financial products and services, indispensable for the sector’s growth and progress. It is acknowledged that the mining industry carries inherent risks and requires measures to mitigate these risks. Hence, the NMDB would furnish financial instruments such as guarantees, insurance, and risk-sharing mechanisms to address these challenges.
Moreover, the significance of the bank lies in its ability to facilitate various stages of project development, including funding for exploration, feasibility studies, and infrastructure development. This support is anticipated to bolster local participation in the sector, leading to the creation of employment opportunities and economic empowerment within mining communities.
It is noteworthy that the envisaged role of the proposed bank extends to promoting environmentally and socially sustainable mining practices. By providing funding for projects that adhere to best practices in environmental management, community engagement, and social responsibility, the NMDB aims to promote responsible mining practices in the country.
The establishment of the NMDB is regarded as a strategic move to unlock the sector’s potential, drive sustainable development, and contribute to economic diversification and growth in Nigeria. The backing from the House of Representatives manifests the government’s resolve to address the challenges encountered by the mining sector.
This bill represents a pivotal step towards the enhancement of the mining industry in Nigeria and underscores a steadfast commitment to the economic growth and diversification of the country. The establishment of NMDB will undoubtedly play a pivotal role in transforming the mining sector, fostering sustainable development and economic progress.
Source: https://www.thisdaylive.com/index.php/2021/06/16/house-of-reps-passes-nigerian-mining-development-bank-bill-for-2nd-reading/
