Federal Govt Earns N6.5bn From Mining In Q1

The federal government earned N6,957,826,200 from mining fees and registered 118 new private mineral buying centres in the first quarter of this year.

Minister of Solid Minerals Development Dr Dele Alake, who revealed this at the  second Annual Mining Conference organised by Businessday newspaper in Abuja at the weekend

Alake said the revenues reflect the outcome of the Ministry’s efforts to raise awareness and attract investors.

According to a statement signed by his media aide Segun Tomori, Alake said the mining fees were collected by licensing parastatal, Mining Cadastral Office, MCO.

He gave a breakdown: 955 applications were for title grants, 651 for exploration, 270 for small-scale mining, 49 for quarrying, and 24 for reconnaissance permits.

The minister also approved 867 applications, including 512 exploration licences, 295 small-scale mining leases, 60 quarry leases, and five mining leases.

“The revenues are from paying various fees, including annual service fees, application processing fees, and renewal of titles,” he explained.

MCO, he further noted, had also stepped up conflict resolution to reduce petitions arising from overlap and litigation over ownership.

Dr Alake disclosed that the Ministry had recorded a lot of progress in plans to set up the Nigerian Solid Minerals Corporation to serve as a special-purpose vehicle that will catapult Nigeria into the league of global mining players.

Speaking on the theme, “Building A Resilient Mining Sector,” Dr. Alake said the corporation will be globally competitive and rooted in Nigerian expertise and capital.

*We are finalising its structure in partnership with the Ministry of Finance Incorporated (MOFI). Nigerians will have the opportunity to invest through a public offer, with 25 per cent equity reserved for citizens, 25 per cent for the government, and 50 per cent for the private sector”, the minister stated.

He scored the ministry high on revenue generation,  citing how it overshot the 2024 projected revenue of N11 billion by N27 billion to N38 billion.

Highlighting the impact of international engagements, Alake revealed that the French government had committed to equip the laboratory of the Nigeria Geological Survey Agency (NGSA) and train young geologists abroad in modern mining technologies on the heels of the MOU signed by President Bola Tinubu and French President Emmanuel Macron.

He disclosed that the government of Western Australia had recently approved the regular training of Nigerian mining professionals, and the first batch of trainees are billed to depart next month.

“British and Saudi Arabian investors are coming together to invest across the mineral value chain, and just a few days ago, we signed an MOU on capacity building in the geology field with South Africa”, Dr Alake added.

Citing the impact of his value addition policy, the minister declared that it had enhanced local beneficiation and positioned Nigeria as the indisputable leader of African mining countries.

“Nigeria emerged as the pioneer chairperson of the African Minerals Strategy Group (AMSG) based on our advocacy for value addition and opposition to the reckless exportation of raw minerals without processing or refining.

“One of our goals is to use this position to attract investment to Africa and Nigeria. This is already yielding fruit as we will commission some Lithium, bauxite, and gold refining plants this quarter”, he stated.