In November, Nigeria’s government introduced amendments to the Nigeria Minerals and Mining Act (NMMA), originally established in 2007, to invigorate the nation’s stagnant mining industry, which currently contributes a mere 0.3% to GDP. The revisions aim to decentralise authority over mineral rights, shifting responsibility from the federal government to local authorities, thereby empowering communities to combat illegal mining and bolster legal operations. The changes are part of a broader strategy to diversify the economy away from oil dependency.

Historically, Nigeria’s mining sector thrived pre-1970s before the oil boom overshadowed it. In the wake of the civil war, many mines were abandoned, and despite the 2007 law aimed at attracting foreign investment, illegal mining has proliferated, particularly in states such as Kaduna and Zamfara, impacting local communities and the environment. The ongoing trade of illegally mined gold for arms and safety concerns surrounding mining sites exacerbate these challenges.

The amended NMMA will enable states to generate more revenue from legal mining, thus incentivising local governance and compliance. However, challenges such as inadequate transport infrastructure, security issues, and the overshadowing presence of the oil sector still hinder mining’s growth potential. As the bill awaits parliamentary approval, its potential to effect transformational change remains in question, primarily due to Nigeria’s deeper structural economic issues.

Nigeria’s mining sector has been largely stagnant due to an outdated mining law that hasn’t been revised since 2007. With current mining output contributing only 0.3% to GDP and the nation heavily reliant on imports for minerals, there is an urgent need for reform. As the oil and gas industry dominates the economic landscape, the government strives to rebalance its economy by revitalising mining through significant legal amendments that aim to devolve regulatory power to local entities and combat widespread illegal mining.

The proposed changes to the Nigeria Minerals and Mining Act reflect a critical effort to stimulate the mining sector by empowering local governments and communities. As new responsibilities are transferred from the federal government to state and local levels, the hope is to address illegal mining and cultivate legitimate sector growth. Nonetheless, substantial challenges, including security and infrastructure, may continue to impede significant progress. Therefore, while the amendments are pivotal, they alone may not transform the mining industry without additional institutional and economic reforms.

Original Source: african.business

The post Nigeria’s New Mining Law: A Strategic Shift to Revitalise the Sector first appeared on Nigerian Mining News.

The Nigerian Mining Cadastre Office (MCO) has reported a significant revenue achievement, reaching N8.19 billion in October 2024, marking a record high for the agency. This achievement reflects Nigeria’s commitment to economic diversification through the solid minerals sector. Engr. Obadiah Simon Nkom, the MCO’s director-general, highlighted that ongoing initiatives like enhanced transparency and digitalisation of processes contributed to this robust financial performance. Nkom shared a comparative revenue analysis showing a steady increase over recent years. For instance, revenues grew from N2.37 billion in 2019 to N8.19 billion in October 2024. These improvements were driven by stringent enforcement measures and efficiency in licensing and revenue collection. The director-general emphasised that all revenue is directed to the federal government’s Treasury Single Account (TSA). During an oversight visit by the Senate Committee on Solid Minerals, chaired by Senator Sampson Ekong, Nkom detailed the NMCO’s responsibilities in issuing mining licenses and improving industry efficiency. He noted that revenue generated from 2019 to October 2024 was N26.23 billion, confirming a 63% increase compared to the previous reporting period. Senator Ekong affirmed the importance of the committee’s visit in promoting transparency and accountability in mining operations. He concluded that collaboration and reforms are crucial for the mining sector’s growth, and pledged to support the MCO’s initiatives aimed at maximising Nigeria’s mining potential.

The Nigerian Mining Cadastre Office is responsible for managing and regulating the country’s mining activities through licensing and revenue collection. The agency plays a vital role in facilitating economic growth by enhancing the solid minerals sector. Recent efforts to modernise their processes and improve transparency are aimed at increasing revenue and operational efficiency, showcasing the government’s strategy to harness the mining industry’s full potential. The significant revenue growth reflects broader efforts to diversify Nigeria’s economy away from oil dependence, focusing instead on sustainable mineral extraction.

The Nigerian Mining Cadastre Office achieved a remarkable N8.19 billion in revenue in October 2024, showcasing progress in the country’s mining sector. Driven by transparency and digital advancements, this achievement aligns with Nigeria’s goal to diversify its economy. The Senate Committee on Solid Minerals emphasised the need for corporate responsibility and supported collaboration across regulatory bodies for continued improvement and growth within the industry.

Original Source: leadership.ng

The post Nigerian Mining Cadastre Reports Record N8.19bn Revenue in October 2024 first appeared on Nigerian Mining News.