The Senate has moved to establish the Solid Minerals Development Bank of Nigeria to enhance access to finances by stakeholders in the sector.
When created the bank will also support medium to long-term lending, with a duration of up to 10 years and a moratorium of up to 18 months.
The Solid Minerals Development Bank of Nigeria (Establishment) Bill, 2022 (SB. 720) Sponsored by Senator Yakubu, Oseni (Kogi Central), would also enable borrowers in the sectors to have a lengthy period to repay the loans from the Solid Minerals Development Bank unlike what is obtainable with deposit money or commercial banks.
In his lead debate, Senator Oseni explained that banks will accelerate sustainable socio-economic development and boost the Solid minerals sector as well as the quality of life of the people by providing financial and non-financial investments in the sector.
“The Bank is a financial inclusion bank whose major objective is for them to satisfy the funding needs of the solid minerals sector in this country,” he added.
He further pointed out that the Solid Minerals Development Bank of Nigeria will provide loans to small, medium and large industrial enterprises, especially mining, quarrying, manufacturing and ancillary industrial support services.
This is as it will equally provide 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 this Act.
While facilitating 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 loanable funds available to the Bank; the institution will also make available, working capital loans to an eligible enterprise where the projects are unable to secure same from the banking system.
The Sponsor of the Bill noted that besides providing credit facilities either in Naira or in foreign currencies or both, depending on the sources of funds available to the banks for the requirements of the eligible enterprise or project; the proposed bank will, subject to the approval of the Minister, raise loans from the local and international capital market and from bi-lateral and multi-lateral sources from time to time as the market institution permits, among others.
When enacted, Senator Oseni said that the Bill 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.
