FG generates N14.59bn from mining licences in five years


THE Federal Government generated N14.59 billion from mining licences in five years.

The Director-General Nigeria Mining Cadastre Office (NMCO) Obadiah Nkom disclosed this at the 63rd session of the State House Ministerial Briefing organised by the Presidential Communications Team in Abuja.

Nkom noted that the agency in 2018, 2019, and 2020, generated N1.55 billion, N2.38 billion, and N2.57 billion, respectively.

Also, in 2021 and 2022, the agency generated N4.3 billion and N3.79 billion, respectively, recording a drop in revenue.

The NMCO director-general explained that the drop in revenue was due to the changes in the agency’s internal operating system which temporarily affected inflows.

He further disclosed that 100 per cent of the agency’s revenues are sent to the Treasury Single Account (TSA) of the Federal Government.

Nkom added that a large volume of the revenue comes from applications for mining licences, processing and annual service fees, which constituted 50 per cent of the annual revenue generated by the Federal Ministry of Mines and Steel Development.

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Nkom who was reappointed this year by President Muhammadu Buhari said the agency has revoked 3,000 titles, with plans to revoke more in 2023.

He stated that the mining licences are revoked on an ongoing basis and as such, the figures change rapidly.

“If you have not paid, we put it on the newspaper and then, we gazette it and we give you 30 days to ensure that you pay so that the serious ones will come and pay and those that are not serious, we will revoke it. We have revoked titles,” he said.

Nkom explained that the revocation was to ensure that minefields are cleared for serious operators. According to him, there over 6,000 mineral title holders in Nigeria.

“There are over 6,000 licences. For now, if you are seeing 9,000 on the website and I told you that we have over 3,000 licences that are revoked.

“We have just gazetted and we are going to implement that. When you look at that implementation and that 3,000 licences that are removed, we end up having 6,000.

“At the end of the day, from the little arithmetic I know, from over 9,000 and if you remove 3,000 revoked licences, you will be able to have over 6,000.”

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Nkom further stressed that there are requisites, restrictions and conditionalities for the issuance of coal mining licences in Nigeria.

He, however, said the need agency is strategic and consider current global issues in its operations.

“The Mining Cadastre Office does not just issue licences, we look at the future, issues of sustainability, maximising value, strategically ensuring Nigeria is properly managing her mineral wealth to achieve maximum economic value and diversification,” Nkom said.


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