House of Reps Passes Nigerian Mining Development Bank Bill for Second Reading

Adedayo Akinwale in Abuja

The House of Representatives yesterday passed for second reading a bill for an Act to establish the Nigerian Mining Development Bank (NMDB).

Leading the debate on the bill at the resumed plenary, the sponsor, Hon. Uchanna Okonkwo, said the bill was aimed at providing financial support, promoting investment, and fostering sustainable development in the mining sector.

He explained that the establishment of the bank could  have several important implications and benefits for the country’s mining sector.

The lawmaker said  that one of the primary challenges facing the mining sector in Nigeria was lack of access to finance for mining projects.

He noted that a dedicated mining development bank could provide tailored financial products and services to support the growth and development of the sector.

Okonkwo stressed that the mining sector often involves high risks, including geological, operational, and market risks, adding that a specialised bank could help mitigate these risks by providing financial instruments such as guarantees, insurance, and risk-sharing mechanisms.

The lawmaker further explained that the bank could also support the development of mining projects by providing funding for exploration, feasibility studies, infrastructure development and other critical stages of project development.

Okonkwo said by promoting local participation in the mining sector, the bank could help enhance local content development, create employment opportunities, and foster economic empowerment in mining communities.

He pointed out that the bank could 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.

The lawmaker was of the opinion that the bank could be a strategic move to unlock the potential of the country’s mining sector, drive sustainable development, and contribute to economic diversification and growth.