A bill for an Act seeking to establish the Nigerian Mineral Development Corporation (NMDC), scaled second reading on the floor of the Senate on Tuesday.
The bill sponsored by Senator Umaru Tanko Al-Makura, (APC, Nasarawa South) is aimed at increasing investments in the mining sector.
In his lead debate, Al-Makura said next to agriculture the solid mineral has the potential to help Nigeria diversify its economy away from its current monolithic nature if effectively managed.
” As part of this administration’s effort towards the diversification of the Nigerian economy, one of 9 priority areas is stabilizing the Macroeconomy by strategically diversifying Nigeria’s economy from being a mono-product economy to the productive development of various sectors of the economy.
“Next to agriculture, the solid mineral sector has been identified as one with the potential to compete and eventually replace crude oil as a major source of foreign exchange earnings.”
He said despite being blessed with an array of precious minerals including gold, bitumen, coal, uranium, ruby, metallic ore; all the resources remain largely untapped.
Al- Makura argued strongly that the establishment of the Nigerian Solid Mineral Development Corporation ( NSMDC) will help Nigeria address the infrastructure deficit, tackle the challenges of Internally Generated Revenue (IGR), and also create job opportunities.
“It is expected that the establishment of the NMDC will urgently address the challenges of Internally Generated Revenue (IGR) currently facing state Government in Nigeria, as it would provide the much-needed revenue to deliver on the administration’s priority areas of infrastructure development; social inclusion and poverty reduction, industrialization and job creation for the citizens of Nigeria.”
According to the bill, the initial take-off grant for the Corporation is to be drawn
by way of a sovereign guarantee covering the sum of N5,000,000,000.00 (Five billion Naira only) for a successful take-off of the operation including all initial capital and operating expenditure.
The Federal Government of Nigeria will pay 70% equity contribution while the institutional investors shall pay their respective equity participation to the corporation.
“Subsequent funding of the NMDC will then be through the Nigerian Mineral Development Fund (NMDF) to be managed by the corporation strictly in accordance with international best practices.”
The bill enjoyed overwhelming support and across political divide from the federal lawmakers.
In his contribution, the Senate Leader, Abubakar Yusuf noted that the bill is very important to the actualization of a major item on the legislative agenda of the 9th Senate.
Senator Ibikunle Amosun (APC, Ogun Central) also backed the establishment of the Corporation describing it as a bold move and the missing link in the management of Nigeria’s solid mineral resources.
Senator Muhammad Sani Musa( APC, Niger East), also supported the bill; stressing that apart from expanding the Nigerian economy, it will check illegal mining and tackle insecurity in the country. According to Musa, miners are responsible for many of the attacks in the country.
The Senate subsequently reached a resolution allowing the bill to scale second reading.