A bill seeking the establishment of the Nigerian Mining Development Bank (NMDB) has passed a second reading in the House of Representatives.
The lawmakers on Tuesday debated the general principles of the bill and passed it for second reading.
The bill, sponsored by Uchenna Okonkwo, proposes to establish the bank to “provide financial support, promote investment and foster sustainable development” in the mining sector.
Recent push to revamp the mining sector
The Nigerian government has been struggling to control the mining sector due to the activities of illegal miners, who have made the sector risky for investors.
The Minister of Solid Mineral Development, Dele Alake, has repeatedly claimed that foreign players are behind some of the criminals operating some of the illegal mining sites across the country, although the minister failed to provide the names of those involved in the illegal activities.
Despite the activities of illegal miners, Mr Alake has been promising to revamp the sector to contribute to the nation’s revenue and GDP.
On Monday, Mr Alake, who doubles as the chairperson of the African Minerals Strategy Group, during a panel session in Washington DC, urged mineral-rich African countries to use the proven mineral reserves of their countries as equity in joint ventures, instead of taking loans that worsen the plight of their people.
However, the government has yet to address the activities of the illegal miners operating across the country.
Aside from the activities of illegal miners, the sector is facing a significant cash crunch as investors are wary of the insecurity in the sector.
Debate on the bill
While leading the debate, Mr Okonkwo said the bank would create the needed credit to drive the sector.
“It is imperative that we grasp the transformative potential inherent in this legislative endeavour, comprehending its profound implication for our nation’s economic terrain,” he said.
“Let us delve beyond the surface and unearth the profound layers and benefits within the bill considering its pivotal role in unlocking Nigeria’s vast mineral wealth.”
He said the bill is anchored on economic transformation, inclusive growth, promoting investment and expertise, stimulating investment within the mining sector, ensuring sustainable development and environmental responsibility.
The lawmaker said the bill extends a supportive arm to individuals, corporations, and companies actively involved in mining activities, ensuring equitable access to credit facilities.
Speaking of the bill, Ahmed Jaha (APC, Borno), described the proposed legislation as “one of the best bills presented on the floor of this House”.
Mr Jaha faulted the dependency on the oil sector which is subjecting the economy to external pressure.
“By investing heavily in the mining sector by supporting this bill, it is going to encourage local investors,” Mr Jaha said.
“It is equally going to discourage foreign investors that come in and exploit our resources at the expense of the taxpayers
“If you observe, 90 per cent of our mining companies are being established, managed, generated, and exploited by foreign multinational companies”.
Mr Jaha said the country lacks enough funds to “tap our own resources”.
“With the establishment of this bank, loans and other financial investment will be granted to the industry and at the end of the day we will fetch a lot of things,” he said.
Also speaking in support of the bill, Gaza Gbefwi (SDP, Nasarawa), said the bill is important to the development of the Nigerian project.
Mr Gbefwi, who is the chairman of the House Committee on Solid Minerals, said the solid minerals sector is a “very complex sector” and “unfortunately the average banking outlet does not take into consideration the risk associated with the sector”.
“We need a special purpose vehicle that will be able to put together the intricacies involved in the very complex and risky nature of kind of business,” he said.
The bill was unanimously voted for when it was put to a voice vote by Speaker Abbas Tajudeen.
It was referred to the Committee on Solid Minerals for further legislative action.(Premium Times)
