A bill seeking to establish the Solid Minerals Development Bank has passed second reading at the senate.
The bill, sponsored by Yakubu Oseni (APC, Kogi Central), seeks to boost the solid minerals sector and the quality of life of the people by providing financial and non-financial investments in the sector.
The bill was passed after Senator Oseni, led a debate on it on Tuesday.
“The principal mission of the bank is to increase financial inclusion by providing access to credit finance. The bank will also support medium to long-term lending, with duration of up to 10 years and a moratorium of up to 18 months. This would enable borrowers in the sectors to have a lengthy period to repay the loans from the Solid Minerals Development Bank unlike the deposit money or commercial banks.”
He listed some major aims and objectives to include, providing loans to small, medium and large industrial enterprises, especially mining, quarrying, manufacturing and ancillary industrial support services and;
Providing short, medium and long term financing to participating financial institutions for on-loading to small scale, medium and industrial enterprises and projects especially in mining, quarrying and ancillary industrial support services; and where considered appropriate provide financing directly for the attainment of any of the stated aims and objectives of the Bank under the Act.
The lawmaker said the bank will also facilitate the provision of loans with five to ten years maturity including a grace period of one to three years, depending on the nature of the enterprise or project and Ioanable funds available to the bank.
The enactment of the bill, he added, will be a perfect answer to the diversification drive of the federal government outside oil as the bank will be a major driver of the economy especially in the solid mineral sectors.
He said aside the development of small businesses and the encouragement of entrepreneurial activity, the broader aim of the Solid Mineral Development Bank will include the redistribution of income between social classes, diversification of economy and job creation.
Contributing to the debate, Smart Adeyemi, senator representing Kogi west, said the development of the solid mineral sector is essential in diversifying the economy.
“This is the time for us to diversify as a nation and take practical steps to enhance the development of solid minerals which is the most reliable means of galvanising the economy.
“This is a bill that is timely and all of us should encourage it,” Adeyemi said.
On his part, Ibikunle Amosun, senator representing Ogun central, said having a bank dedicated to development will go a long way in developing the sector.
“Let me commend and appreciate the mover of this bill, Senator Yakubu Oseni for coming up with this bill. Until we do the right thing, there is no way we will develop the mining sector,” Amosun said.
Thereafter, Deputy Senate President, Ovie Omo-Agege, referred the bill to the committee on solid minerals.
The committee is expected to report back in four weeks.
