The Nigeria Mining Cadastre Office (NMCO) has revealed a significant gap in mining activity, stating that while it has issued about 7,000 mining licenses, fewer than 1,000 mines are currently operational.
This disclosure was made by NMCO’s Director General, Obadiah Nkom, during a visit by the House Committee on Solid Minerals, led by Chairman Jonathan Gaza, to the NMCO office in Abuja. The NMCO operates under the Federal Ministry of Solid Minerals Development.
Mining License and Funding Issues
Nkom called for critical reforms to address challenges surrounding mining license fees and title ownership to improve sector performance.
Highlighting the disparity, Nkom stated, “We shouldn’t have 7,000 licenses with less than 1,000 active mines,” as reported by NAN.
Despite generating over N8 billion in revenue by October 2024, Nkom lamented the agency’s funding shortfall, which hinders its operations. He appealed to the committee to advocate for better funding, emphasising that NMCO contributes more than 50% of the sector’s revenue but does not retain collection fees.
He also highlighted strides in digitisation, transitioning from an intranet-based system to a web-based platform for enhanced transparency and global access.
Additionally, Nkom assured ongoing collaboration with the Economic and Financial Crimes Commission (EFCC), mentioning the establishment of an anti-money laundering unit within NMCO.
The mining licenses cover resources such as coal, gold, iron, limestone, zinc, beryl, lithium, columbite, and lead, among others.
Committee Concerns and Illegal Mining
Chairman Jonathan Gaza expressed concerns about the licensing process, particularly around consent issues. He emphasised the persistence of illegal mining in Nigeria despite the large number of licenses issued.
Gaza acknowledged NMCO’s funding challenges and assured Nkom that the committee would escalate the matter to the Minister of Solid Minerals Development, Dr. Dele Alake.
Government Efforts to Sanitise the Sector
Minister Dele Alake reiterated his ministry’s commitment to reforming the mining sector on September 2, 2024.
“A key element of my commitment to eliminating illegal mining is enhancing our Mining Marshals’ operations through technology and satellite monitoring.
“I urge anyone involved in illegal mining to comply with the Nigerian Minerals and Mining Act (NNMA) and regularise their operations. Our resolve to take decisive action against illegal activities is unwavering, and we will maintain zero tolerance for any form of illegality,” Alake tweeted.
The federal government also took decisive action in September, charging several illegal miners, including two Chinese nationals and a Nigerian in Kogi, as well as four others caught mining gold in Ondo’s Ogunlepa Forest Reserve.
