The Nigeria Mining Cadastre Office (NMCO) has disclosed that it issued about 7,000 mining licenses, yet less than 1,000 mines are active.
NMCO’s Director General, Obadiah Nkom, revealed this on Tuesday when he received the House Committee on Solid Minerals, led by Chairman Jonathan Gaza, at the NMCO office in Abuja.
NMCO is an agency under the Federal Ministry of Solid Minerals Development.
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Mining License and Funding Issues
Nkom called for reforms to address the issuance of mining licence fees and the ownership of mining titles in order to sanitize the sector.
Highlighting the discrepancy in license issuance, he said, “We shouldn’t have 7,000 licenses with less than 1,000 active mines,” according to NAN.
He lamented that despite the agency collecting over N8 billion in revenue as of October 2024, it faces inadequate funding, which negatively affects its operations.
Nkom appealed to the committee to address this issue, noting that NMCO generated more than 50 percent of the sector’s revenue but lacked collection fees.
He mentioned that NMCO had made significant strides in digitization, transitioning from an intranet to a web-based platform for global access and transparency.
Nkom also assured of sustained collaboration with the Economic and Financial Crimes Commission (EFCC), citing the development of an anti-money laundering unit within the agency.
Some of the mineral resources these mining sites explore across Nigeria include coal, gold, iron, limestone, zinc, beryl, lithium, columbite, and lead, among others.
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In response, Gaza expressed concerns about the licensing process, especially the issue of consent.
He noted that despite the large number of licenses issued, illegal mining remains prevalent in Nigeria.
Gaza agreed that the agency was underfunded, assuring Nkom that the committee would present the situation to the Minister of Solid Minerals Development, Dr. Dele Alake, for appropriate action.
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On September 2, 2024, Dele Alake assured Nigerians that the ministry and its agencies are dedicated to sanitizing the mining sector.
“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 regularize their operations. Our resolve to take decisive action against illegal activities is unwavering, and we will maintain zero tolerance for any form of illegality,” he tweeted.
In September, the federal government charged suspected illegal miners arrested in Kogi and Ondo states.
The suspects included two Chinese nationals and a Nigerian in Kogi, along with four suspects caught illegally mining gold in Ondo’s Ogunlepa Forest Reserve.
