•••SAYS 3,400 LICENCES REVOKED, PLANS TO REVOKE MORE
The Federal Government said the Nigeria Mining Cadastre Office, responsible for the management and administration of mineral titles in the country, has generated N14.59 billion in five years (2018 to 2022).
The Director-General of the agency, Obadiah Nkom, disclosed this to State House Correspondents at the 63rd session of the State House Ministerial briefing organised by the Presidential Communications Team at the Aso Rock Villa, Abuja.
According to the agency, in 2018, 2019 and 2020, it generated N1.55 billion, N2.38 billion and N2.57 billion, respectively.
Explaining further, he stated that between 2021 and 2022, the agency’s revenue fell from N4.3 billion to N3.79 billion, respectively.
The DG attributed the drop in revenue to changes in its internal operating system which he said temporarily affected the revenue inflow.
Nkom who was recently reappointed for another period of four years, said the agency has revoked 3,400 titles, already adding that the agency’s bid to generate appropriate revenue for the government, plans are on to revoke more unutilised titles in 2023.
According to him the application of the principle of “use it or lose it” to mining title/rights administration and failure to pay up mandatory annual service fees are responsible for revocation.
The DG explained that there are restrictions and conditionalities for the issuance of coal mining licenses in Nigeria.
“We have to be very strategic, and also take into account current global issues.
The Mining Cadastre Office does not just issue licenses, we look at the future, issues of sustainability, maximizing value, strategically ensuring Nigeria is properly managing her mineral wealth to achieve maximum economic value and diversification.”
On the principles of allocation of mining licenses in Nigeria, the DG said the agency gives priority to ‘first come first served’ and ‘Use it or lose it’.
“How does the system run? Is on use it or lose it basis. We’ve had instances where people receive and get licenses and keep these licenses, and they don’t use them.
“The law is very, 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.” Nkom explained.
He further stressed that the agency has witnessed tremendous legal, institutional and technological developments since its inception.
He promised that the government would continue to sanitize the sector through transparent polices and processes
According to the DG, the agency has not lost any litigations before.
“What is the secret to that? the secret is simply ensuring that we adhere strictly to the provisions of the Act.”
Speaking on transparency, the DG said If you needed any document relating to the issuance or revocation of mining licenses in Nigeria, the law permits the MCO to make it available.
Nkom said the agency also works closely with NEITI in all the activities to ensure that mineral titles are issued in the most transparent manner, not only for the Nigerian investors, but internationally.
“Because we must be able to ensure that we encourage and bring in foreign direct investment into the sector, bringing in big time miners to the sector as much as possible,” he said.
