Nigeria’s Mining Sector: Big Changes on the Horizon
The Nigerian mining sector has been experiencing some significant developments lately. As it turns out, the government has cancelled a whopping 3,400 mining licenses in the past year, and there’s talk of more revocations in 2023. Obadiah Nkom, the head honcho at the Nigeria Mining Cadastre Office, spilled the beans on this while chatting with the media in Abuja. According to him, licenses are taken back if the holders don’t adhere to the ‘use it or lose it’ rule and fail to pay the annual fees. Basically, it’s like a game of ‘use it or lose it’, and if they don’t use it, they lose it! As for making money, the office has brought in a substantial N14.59 billion from licensing over the last five years. That’s a pretty penny, if you ask me!
When it comes to handing out licenses, Nkom said they follow the ‘first come first served’ and ‘use it or lose it’ rules. If you grab a mining opportunity but fail to act on it, tough luck – the license is up for grabs. It’s a strict ‘follow the rules or face the consequences’ type of arrangement. And if you think they’re joking around, think again. They give a warning to anyone who’s slipping up, and if they don’t fix it within 30 days, the license is gone. No ifs, buts, or maybes!
To boost the national funds, the Nigeria Mining Cadastre Office is all set to cancel even more unused licenses in 2023. As for the money, the office has made N14.59 billion since 2018 just from licensing. That’s a serious amount of money!
When it comes to the cash, Nkom broke it down for us. In 2018, 2019, and 2020, the office collected N1.55 billion, N2.38 billion, and N2.57 billion respectively. But the amount decreased in 2021 and 2022, dropping from N4.3 billion to N3.79 billion. The decrease was due to some internal changes that affected the flow of money. Nkom, who’s secured another four-year term at the top, pointed out that there are several rules and conditions for obtaining a coal mining license in Nigeria. It’s all about playing the long game, staying informed about global trends, and ensuring Nigeria gets the most value from its mineral wealth.
Speaking of money, the Cadastre brought in over three billion last year alone. Nkom believes the sum comes from issuing licenses to miners, and that’s just part of the office’s job. Their main responsibility is to manage mineral titles and keep track of the Cadastre register. Generating significant revenue is crucial because it’s all about driving development for the country. Nkom predicts a steady increase in revenue, especially after tightening up the system. It’s all about keeping the country moving forward, and it’s a win-win situation if you ask me!
The Cadastre’s recent transparency has resulted in a flood of mining permit requests. They’ve been attracting both local and foreign players thanks to their straightforward policies and procedures. Additionally, they’ve established regional offices to make it easier for people and to reduce illegal mining. Combine that with some intelligent coal projects that will offer citizens more energy options, and it’s clear they’re excelling!
Nkom also highlighted the office’s collaboration with state governments, working closely to advise the leaders on all things mining. And with a focus on coal, they aim to enhance the options for keeping the lights on at home. It’s safe to say the Nigeria Mining Cadastre Office is making significant progress, and I’m excited to see what else they have in store!
