How Nigerian Mining Cadastre Office Increased Revenue Generation by 86%

By Danlami Nasir Isah

The Nigerian Mining Cadastre Office has recorded a cumulative 86 percent increase in revenue generation, raking in N9.3 billion between 2019 and 2021, as compared to N4.8 billion generated in the corresponding period of between 2016 –and 2018.

According to official information accessed by Valuechain, this figure also accounts for about 50 per cent of the contribution of the Ministry of Mines and Steel Development to the Nigerian economy within the period under review.

Recently, President Muhammadu Buhari approved the appointment of Engr. Obadiah Simon Nkom as Director General of the Nigerian Mining Cadastre Office for a second and final term of four years with effect from January 12th, 2023.

Engr Nkom, who was first appointed started on January 12, 2019 for an initial period of four years, said that the revenue increase during his time at the Nigerian Mining Cadastre (NMCO) was based on various reforms and pragmatic policies, whereby the NMCO and the Ministry of Mines and Steel Development provided necessary oversight and support to make these reforms and policies fruitful.

The implementation of reform programmes under the oversight of the Minister of Mines and Steel Development, Arc Olamilekan Adegbite, and the Minister of State, Dr Uchechukwu Ogah, have been based on the Nigerian mining sector roadmap, with the country witnessing major entry of mining companies from Australia, Canada, United Kingdom, UK, China, Japan, and South Africa, among many other nations.

Valuecahin learnt that these companies now have their mineral titles, which they are currently leveraging in the exploration and exploitation of various solid minerals in different parts of the country.

The right to explore or exploit minerals in Nigeria is evidenced by the grant of a mineral title, which can be granted to an eligible applicant under the Act in accordance with the Nigerian Minerals and Mining Regulations (NMMR) and after the submission of an irrevocable consent form by land owners or occupiers.

Listed mineral titles obtainable in the country include the Reconnaissance Permit (RP), Exploration Licence (EL), Small Scale Mining Lease (SSML), Mining Lease (ML), Quarry Lease (QL) and the Water Use Permit (WUP).

Valuechain investigations show that as at March 2022, some 7,233 valid mineral titles were active in Nigeria, while 15,483 applications have been refused and 4,997 revoked by NMCO since its inception in 2007.

Engr. Nkom revealed that ongoing reforms at the MCO have transformed the ways of doing business and promoted ease of doing business. These reforms include automation of all activities and the provision of an online database, which have combined in taking the Nigerian mining sector to the world stage and boosting investors’ confidence.

Findings by Valuechain confirmed that the entire system at NMCO was overhauled and sanitized, and that helped to fast-track revenue generation in an unprecedented manner.

In trying to achieve this, the “Use It or Lose It” policy was central in the industry, as companies were kept on their toes in ensuring that their licenses remained operational and not idle. Also, those seeking services from the agency but who were owing monies on previous services were made to pay before further service was rendered to them by the NMCO.

According to the NMCO Boss, “and that has been our major strategy to make our revenue go up. We also ensure enforcement of the Minerals and Mining Act 2007, and the Use It or Lose It strategy was implemented to ensure all licenses are operational, and those not being used are revoked in accordance with the law.”

It was as a result of this that, despite budgetary constraints and coupled with other challenges created zonal offices, the NMCO was able to generate up to N9.384 billion within a period of three years at the end of 2021.

Meanwhile, during the earlier days of Engr. Nkom in 2019, the NMCO generated N2.580 billion, which was the second-highest revenue the agency had recorded at that time since inception in 2007.

In the words of the NMCO helmsman, “how did we make more money in 2019? We told operators who owe us money but came to us for services that they would get services only after they had gone to purge themselves and come back with zero-debt. We stopped giving services to those owing us.”

Even in 2020, a year that witnessed the height of the devastating COVID-19 pandemic in Nigeria, the agency never relented but went all out against all odds to generate N2.303 billion.

Then, on December 31, 2021, the revenue generated was N4.3 billion, representing the highest revenue ever generated by the Nkom-led NMCO.

His value-adding activities and recently-unveiled reforms in the automation of the Mining Cadastre system have revolutionalized online and real-time mineral title administration and management.

It is also to his credit that during his first term as DG, the Nigeria Mining Cadastre Office was named The Best Agency of the Federal Government in the category of Digital Innovation Awards for the year 2022 under the auspices of the Nigeria Internet Registration Association (NIRA).