Boosting Nigeria’s Revenue: Impressive Earnings from Mining Sector
The Minister of Solid Minerals Development, Mr Dele Alake, has disclosed that the federal government has accrued a substantial N16.4 billion from May 2023 to April 2024 from mining royalty and sundry fees via the Mining Cadastral Office (MCO), an agency under the ministry’s jurisdiction responsible for mineral title administration.
In a series of sectoral updates to commemorate President Bola Tinubu’s administration’s first anniversary in Abuja, Mr Alake underscored that the generated figure surpassed expectations by an impressive N6.7 billion, exceeding the agency’s initial target of N10.5 billion.
Furthermore, the minister revealed that the ministry collected N14.938 billion in the year ending December 31, 2023, indicating a positive variance of 72.1 per cent and a substantial 172.1 per cent performance compared to the annual budgetary target of N8,680,197,621.00 for 2023.
Additionally, Mr Alake highlighted the collaboration between the Solid Minerals Development Fund (SMDF) and GeoScan Gmbh for the innovative exploration and development of Nigeria’s critical mineral resources using cutting-edge technology. He also announced a partnership with the African Finance Corporation (AFC) to establish a project development facility aimed at funding companies facing challenges in securing capital for their early-stage exploration projects, with approximately 20 candidates undergoing training to effectively manage the allocated funds.
The minister also emphasized the partnership between SMDF and the global exploration agency, XCalibur, to enhance Nigeria’s geological data capabilities. By positioning SMDF as the preferred partner for international mining companies, the ministry mobilizes capital for critical and strategic mining projects, attracts foreign direct investment, and expedites the delivery of final investment decisions.
In terms of obtaining big data for the sector, the minister proposed a budget of N70 billion for exploration. Although not included in the current budget, the ministry will continue to advocate for this project as a solution to the challenges hindering mineral exploitation in Nigeria.
The progress displayed by the mining sector in Nigeria is undoubtedly an encouraging development. The significant surplus generated from mining royalties and sundry fees reflects the potential for bolstering the country’s revenue through strategic initiatives within the industry. As the government continues to collaborate with local and international partners, the mining sector’s growth and contribution to the economy are poised to further flourish.
