The Senate has passed for second reading, a bill to establish a financial institution known as the Solid Minerals Development Bank.
The bill, sponsored by Yakubu Oseni (APC, Kogi Central), was read for the second time on Tuesday.
The legislation seeks to accelerate sustainable socio-economic development, boost the solid minerals sector and the quality of life of the people by providing financial and non-financial investments in the sector.
The lawmakers earmarked N500 billion for the establishment of the institution.
Oseni said, “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.”
The senator went further to list 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.
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.
Supporting the bill, Sen. Ibikunle Amosun (APC-Ogun) said that until the sectors proposed for diversification were funded, “we will still be operating on a monolithic economy in the country.
“Until when we do the right thing, there is no way we will develop the mining sector.
“We need to fund the sector adequately. If we do not fund, we will not get the best of technology that can develop this sector.”