Reps pass mining development bank bill for second reading

The House of Representatives, on Tuesday, passed for a second reading a bill seeking to establish the Nigerian Mining Development Bank to promote and enhance investment in the sector of the economy.

The proposed law titled “A bill for an act to establish the Nigerian Mining Development Bank, was sponsored by a member representing Idemili North/Idemili South Federal Constituency, Anambra State, Mr Uchenna Okonkwo.

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 and mining-related activities.

The lawmaker argued that “One of the primary challenges facing the mining sector in Nigeria is lack of access to finances for mining projects. The mining sector often involves high risks, including geological, operational, and market risks. A specialised 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.”

Okonkwo further explained that the NMDB, if established, would also support capacity-building initiatives in the mining sector, promote local participation in the sector, and improve the revenue profile of the nation.

He said, “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.”