The Nigeria Mining Cadastre Office (NMCO) has reported issuing approximately 7,000 mining licences, while fewer than 1,000 mines remain active. Director General of NMCO, Obadiah Nkom, revealed this information on Tuesday during a visit from the House Committee on Solid Minerals, led by Chairman Jonathan Gaza, at the NMCO office in Abuja. NMCO, operating under the Federal Ministry of Solid Minerals Development, highlighted the need for reforms in licensing fees and ownership to bring stability to the sector.
Addressing the licence issuance disparity, Nkom stated, “We shouldn’t have 7,000 licences with fewer than 1,000 active mines.” Despite NMCO generating over N8 billion in revenue by October 2024, he noted that the agency suffers from underfunding, which impairs its operational capacity. Nkom appealed to the committee to help rectify this funding issue, pointing out that NMCO generated more than 50 percent of the sector’s revenue but lacks collection fees.
Nkom also outlined the agency’s advancements in digitisation, noting its transition from an intranet system to a web-based platform that provides global access and enhances transparency. He assured the committee of ongoing collaboration with the Economic and Financial Crimes Commission (EFCC), including the development of an anti-money laundering unit within the agency.
NMCO also oversees mining sites for resources such as coal, gold, iron, limestone, zinc, beryl, lithium, columbite, and lead across Nigeria.
In response, Committee Chairman Gaza voiced concerns regarding the licensing process, particularly around issues of consent, and noted that illegal mining persists despite the number of issued licences. Recognising NMCO’s funding challenges, Gaza assured Nkom that the committee would bring these issues to the attention of the Minister of Solid Minerals Development, Dr. Dele Alake, to facilitate appropriate action.
Dr. Alake previously stated that the ministry and its agencies are committed to purging the mining sector of illegal operations. In a recent address, he reaffirmed his commitment to enforcing the Nigerian Minerals and Mining Act and implementing technology and satellite monitoring to support the Mining Marshals’ efforts in combating illegal mining.
