Reps move to establish mining development bank

A bill seeking to establish the Nigerian mining development bank (NMDB) has 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 proposes to establish the bank to “provide financial support, promote investment and foster sustainable development” in the mining sector.

The nation’s mining sector is riddled with various challenges, including illegal mining which is said to fuel insecurity.

In December 2023, Dele Alake, minister of solid minerals development, said “powerful Nigerians” are behind illegal mining in the country.

The minister also accused those behind illegal mining of sponsoring banditry.

“One pernicious discovery that we have made is that a lot of these banditry, terrorism, and insecurity that we associate with this sector are actually sponsored by illegal miners,” Alake had said.

“These are not your artisanal miners. They are not the people who pick gold on the ground. These are heavy and powerful individuals in our country. And they are Nigerians. They are not foreigners.”

While leading the debate in the green chamber, Okonkwo said if passed into law, the bill would “change the trajectory” of the nation’s mining 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.”

‘A COMMITMENT TO ECONOMIC TRANSFORMATION’

The legislator said the bill stands on seven key points which include a commitment to economic transformation, inclusive growth, promoting investment and expertise, stimulating investment within the mining sector, ensuring sustainable development, and environmental responsibility.

He said the bill also extends a supportive arm to individuals, corporatives, and companies actively involved in mining activities, ensuring equitable access to credit facilities.

Speaking in favour of the bill, Ahmed Jaha, from Borno, described the proposed legislation as “one of the best bills presented on the floor of this house”.

He said Nigeria’s problem is relying on a single source of income which is “more or less a monolithic economy”.

“By investing heavily in the mining sector by supporting this bill, it is going to encourage local investors,” 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 percent of our mining companies are being established, managed, generated, and exploited by foreign multinational companies”.

Jaha said the country does not have 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.

Gaza Gbefwi from Nasarawa, said the bill is important to the development of the Nigerian project.

Gbefwi said the solid mineral 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 risking nature of [this] kind of business,” he said.

The bill was unanimously voted for when it was put to a voice vote by Tajudeen Abbas, speaker of the house of representatives.