Friday, 20 January 2023 05:28

Mining agency rakes in N14.6bn revenue from licence issuance - Official

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Federal government, through the Nigeria Mining Cadastre Office, says it generated N14.59 billion in five years (2018 to 2022).

Obadiah Nkom, director-general of NMCO, said this at the 63rd session of the state house ministerial briefing, organised by the presidential communications team in Abuja.

He said the agency in 2018, 2019, and 2020, generated N1.55 billion, N2.38 billion, and N2.57 billion, respectively.

However, between 2021 and 2022, the agency’s revenue fell from N4.3 billion to N3.79 billion.

The director-general attributed the drop in revenue to changes in its internal operating system which temporarily affected inflows.

According to Nkom, 100 percent of the agency’s revenues are sent to the treasury single account of the federal government.

He added that the bulk of the revenue comes from application, processing and annual service fees; constituting 50 percent of the annual revenue generated from the federal ministry of mines and steel development.

NMCO REVOKES 3,000 LICENCES OVER NON-PAYMENT OF FEES

Nkom, who was recently reappointed by President Muhammadu Buhari for another period of four years, said the agency has revoked 3,000 titles, with plans to revoke more in 2023.

He said 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.

Explaining that the revocation was to ensure that mine fields are cleared for serious operators, Nkom said there are over 6,000 mineral title holders in Nigeria.

He added that some licences are expiring today, Thursday, January 19, 2023.

“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,” the director-general said.

“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.”

Nkom also said there are restrictions and conditionalities for the issuance of coal mining licences in Nigeria.

He said the agency has to be very strategic, and also take into account current global issues.

“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.

“If you need any documents relating to the issuance or revocation of mining licences in Nigeria, the law mandates the MCO to make it available.”

 

The Cable