Nigerian Legislators Move to Establish Mining Development Bank
The Nigerian Mining Development Bank (NMDB) bill has successfully passed a second reading in the house of representatives. Sponsored by Uchenna Okonkwo, a lawmaker representing Idemili North and South Federal Constituency of Anambra State, the bill seeks to create a financial institution dedicated to providing support, promoting investment, and fostering sustainable development in the mining sector.
The mining industry in Nigeria faces numerous challenges, including the issue of illegal mining, which has been linked to increasing insecurity within the country. Dele Alake, the Minister of Solid Minerals Development, has highlighted the involvement of powerful individuals in illegal mining activities. He also raised concerns that these illegal activities are contributing to the funding of banditry and other forms of criminality in the country.
During the debate in the house of representatives, Okonkwo emphasised that the passage of the bill would be a significant catalyst for change in the nation’s mining sector. He stressed the potential of the proposed bank to unlock Nigeria’s vast mineral wealth and its profound implications for the country’s economic landscape.
The bill stands on seven key points, one of which is a commitment to economic transformation. It also aims to promote inclusive growth, stimulate investment, ensure sustainable development, and uphold environmental responsibility within the mining sector. Furthermore, the bill is designed to provide equitable access to credit facilities for individuals, cooperatives, and companies actively involved in mining activities.
Several legislators voiced their support for the bill, highlighting the importance of diversifying Nigeria’s economy away from overreliance on a single revenue source. Ahmed Jaha, from Borno, expressed that the bill would encourage local investors and discourage the exploitation of the country’s resources by foreign multinational companies. He emphasised the potential for the establishment of the bank to provide financial resources necessary for tapping into Nigeria’s mineral wealth.
Gaza Gbefwi from Nasarawa also emphasised the need for a dedicated financial institution to address the complexities and risks associated with the solid mineral sector. He highlighted that traditional banking outlets often overlook the unique risks involved in this kind of business, and stressed the necessity of a special purpose vehicle to manage these intricacies effectively.
The overwhelming approval of the bill during the voice vote in the house of representatives indicates a widespread consensus among legislators on its potential to spur economic development and transformation within the Nigerian mining sector.
If this bill is passed into law, it could be a significant step forward in addressing the challenges faced by the mining industry and in positioning Nigeria for sustainable economic growth. The establishment of the Nigerian Mining Development Bank has the potential to provide the necessary financial support and impetus for the development of the sector, and ultimately contribute to the diversification of the country’s economy.
