House of Representatives has passed through 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, Uchenna Okonkwo.
The lawmaker, 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.
He 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 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.
“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.”
Also at plenary, the House passed for second reading, a bill for an Act to Amend the Criminal Code Act, Cap. C38, Laws of the Federation of Nigeria, 2004 to Provide stiffer penalties to selected Sections of the Act and for Related Matters (HB.151).