By Andy Asemota
In a bid to diversify Nigeria’s mono – product economy, the Senate is planning to fast track the establishment of Nigerian Mineral Development Corporation (NMDC) to assist investment in the mining sector.
Apart from having an initial funding by way of “sovereign guarantee covering” of five billion Naira for a successful take off of its operations, the corporation is proposed as a State – Owned Enterprise with private sector participation and governance.
This followed a bill sponsored by Sen. Umaru Tanko Al-Makura (Nasarawa South, APC) for an Act to establish the NMDC to promote and support mining sector’s growth as part of Federal Government effort towards the diversification of the economy.
Al-Makura noted that the corporation would seek to develop upstream exploration and production, midstream mineral processing and metallurgy and downstream logistics, trade and export which will catalyze investment in the entire mining value chain in Nigeria.
“The Federal Government of Nigeria would pay up its 70% equity contribution and the institutional investors shall pay their respective equity participation to the corporation. Subsequent funding of the NMDC would be through the Nigerian Mineral Development Fund (NMDF) which will be managed by the corporation strictly in accordance with international best practices,” he said.
Accordingly, the Red Chamber presided over by Ahmad Lawan, mandated the Senate Committee on Solid Minerals to to undertake necessary legislative processes on the bill and report back within four weeks.
Also, the bill which has scaled a Second Reading stage in the Senate, Lawan disclosed, would assist in raising the 0.34% contribution of the solid minerals to the nation’s Gross Domestic Product (GDP).
—END—
