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From Ndubuisi Orji, Abuja
The House of Representatives has passed for second reading a bill seeking to establish the Nigerian Mining Development Bank to promote investment in the mining sector of the economy.
The proposed legislation, which is sponsored by the member representing Idemili Federal Constituency, Uchenna Okonkwo, is entitled “a bill for an Act to establish
the Nigerian Mining Development Bank(NMDB) to provide financial support, promote investment and foster sustainable development in the mining sector of Nigeria and for related matters.”
Okonkwo, in his lead debate, said the establishment of a mining development bank would benefit the country immensely, as it will provide access to funding for mining projects.
The lawmaker noted that “one of the primary challenges facing the mining sector in Nigeria is lack of access to finances for mining projects.” Consequently, he argued that a dedicated bank for the development of mining would provide financial services that will support the growth of the sector.
” The mining sector often involves high risks, including geological, operational, and market risks. A specialized bank can help mitigate these risks by providing financial instruments such as guarantees, insurance and risk sharing mechanisms.
” The bank can support the development of mining projects by providing funding for exploration, feasibility studies, infrastructure development and other critical stages of project development,” he stated.
Okonkwo added that that the NMDB, if established, would also support capacity building initiative in the mining sector, as well as promoting local participation in the sector.
According to him, ” by promoting local participation in the mining sector, the bank can help enhance local content development, create employment opportunities and foster economic empowerment in mining communities.
” The bank can play a crucial role in 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.”
