Nigeria’s Mining Cadastre Office announced that it generated a revenue of N3.88 billion for the period from January to October 2021, an increase compared to N2.3 billion for the same period last year.
This was disclosed by Nigeria’s Minister of Mines and Steel Development, Mr Olamilekan Adegbite at the 5th Annual Nigeria Mining Week held virtually on Tuesday.
At the event themed, “Seven Compelling Reasons to Invest in Nigeria’s Mining Sector,” the Minister added that Mining Cadastre Office (MCO) is a regulatory body responsible for the industry and said it achieved this feat despite challenges posed by Covid-19.
What the Minister said
“MCO grew its revenue from N2.3 billion in 2020 to N3.88 billion in 2021 as of October 31st, with two months still remaining in this year to achieve higher revenue.
“The secret of the sudden jump can be attributed to the introduction of “First Come, First Served” and “Use it or Lose it” in the licensing administration.
“This has helped to re-organise, eliminate speculators, and led to the revocation of about 1,566 mineral titles; and it has activated many dormant licences and increased revenue inflow into Government treasury,” Adegbite said.
He revealed that the MCO’s processes have been made to efficiently help investors apply for mining licenses online and operate in the sector, he added that the FG implemented business-friendly processes to attract foreign capital to its mining industry.
“The incentives include a customs and import duties waiver for plant, machinery and equipment imported for mining operations; tax holidays of between three to five years as applicable,” he said.
He also listed the free transferability of funds and permission to retain and use earned foreign exchange; capital allowances of up to 95 per cent of qualifying capital expenditure, among others.
The Minister stated that Nigeria has made the gold sector more compelling for investors by building a gold ecosystem that nurtures value across the entire value chain, citing the Segilola gold project in Osun, which is the first large-scale high-grade gold project owned by the London Stock Exchange-listed Thor Exploration.
“Similarly, two gold refineries, Kian Smith and Dukia Gold and Precious Metals Refining Company Limited, are currently being built to increase the value of gold in the country for the benefit of all stakeholders.
“Through the ongoing Presidential Artisanal Gold Mining Initiative (PAGMI), we are organising, formalising, and equipping artisanal and small gold miners (ASGMs) in Kaduna, Kebbi, Osun, Niger, Ebonyi, Sokoto, Gombe, and Ekiti.
“We are also building human and institutional capacity, which remain one of the cornerstones of our drive to transform the sector,” he stated.
In case you missed it
Recall Nairametrics reported in September that the Minister of Mines and Steel Development, Olamilekan Adegbite, stated that the Airborne Geophysical Survey activities would aid more investments in the Nigerian mining sector. The survey is meant to determine the accurate mineral locations using modern-day contemporary magnetic and radiometric methods.
