Revenue from mining licences dropped in 2022 – NMCO

0
40

The director general, Nigeria Mining Cadastre Office (NMCO), Mr. Obadiah Nkom has said that the agency remitted N14.59 billion to the federal government between 2018 and 2022.

He said the money was realised from issuing mining licences and accreditation in five years to the federal government.

Nkom disclosed this to journalists yesterday at the 63rd session of the state house ministerial briefing organised by the presidential communications team at the Aso Rock Villa, Abuja.

In 2018, 2019 and 2020, the agency generated N1.55 billion, N2.38 billion and N2.57 billion respectively.

However, between 2021 and 2022, its revenue plunged d from N4.3 billion to N3.79 billion, respectively. Nosedive

Giving reasons for the revenue drop, Nkom said the latest digital upgrades on its license processing platform impeded revenue inflow as activities were suspended temporarily.

He said the NMCO passed through three upgrades between 2007 to date; ensuring the migration of its licensing platform to a real-time, automated system.

“Because we are migrating to the new system, we had to do a lot of shutdowns. It happened because we were migrating to the new system. We wanted to ensure that we don’t have a system where after one day or two, we have a problem.

“We had to test-run it; shut it down at times, do a lot of things and that was what affected some of our activities in terms of revenue.

“But with the new system, subsequently, we are going to have a very good increase, because even at then, we were able to form about 50 per cent of the revenue of the mining sector,” he explained.

The director general also said 100 per cent of the agency’s revenue is remitted into the federal government’s treasury single account.

Besides, he said the bulk of the revenue comes from application, processing and annual service fees.

“All payments right from the inception of the Mining Cadastre have always gone to the government. Even before the commencement of the TSA we have never had reasons to use cash as a mode of payment.

“We were using bank draft then. When TSA came, it made it much easier and I want to put on record that 100 per cent of our revenue generated is sent straight to TSA,” Nkom added.

Nkom said the agency now has about 6,000 registered miners nationwide as it revoked 3,400 titles between September 2021 and September 2022.

He disclosed plans to raise more revenue by revoking more unutilised titles in 2023.

On its guiding principle for the allocation of mining licenses, the Nkom said the agency gives priority to ‘first come first served’ and ‘use it or lose it’.

“How does the system run? It is on use-it-or-lose-it basis. We’ve had instances where people receive licenses and keep these licenses, and they don’t use them. The law is very clear on that. What does that mean? We give you the license. If you don’t adhere to the provisions of the Act, you lose it.

“How do you lose it? You lose it by way of revocation and it’s not arbitrary. We give you a notice of default, for you to be able to remedy the defect; we give you 30 days in line with the law.

“You can decide to remedy the effect on the 29th day. We are fine with that. But once it is 30 days and you don’t remedy the defects, then we revoke the title because we know that all these are subjects to litigations,” he added.

NMCO was set up in 2007 by the Nigerian Mineral and Mining Act 2007 with the mandate to manage and administer mineral titles.

LEAVE A REPLY

Please enter your comment!
Please enter your name here