Mining License Review Addresses Speculators, Creates Opportunities for Investors – Nkom

The recent review of the Mining Rates policy has successfully addressed over 5,000 speculators and raised awareness in the sector.

The Director General of the Mining Cadastral Office, Obadiah Nkom disclosed this during an interview with Voice of Nigeria in Abuja the nation’s capital.

He highlighted the ongoing reforms in the mining sector spearheaded by the Ministry of Solid Minerals Development.

Mr. Nkom explained that one of the primary objectives of the policy review was to combat speculation while simultaneously creating opportunities for genuine investors.

He emphasised that , “As the Director General of the Mining Cadastral Office and chair of the Review Committee, which includes all Chief Executives of the Mining Sector and Technical Directors of the Ministry, our goal was to examine fees, rates, and royalties across the sector. This review aims to reposition the sector, foster economic growth, and eradicate speculators to make the mining industry more vibrant.”

According to the Director General, the review considers the historical evolution of mining laws from 1946 through to 2007.

“It’s essential to address these issues to avoid repeating past mistakes. The current government’s initiative to tackle these challenges reflects a serious commitment to sectoral sanitation.”

Furthermore, Mr. Nkom stressed the need to address re-licensing practices.

“There are fewer than 500 operational licenses in the country, which means over 5,000 licenses are held by speculators. The minister has approved the revocation of many such licenses, aligning with the law. This step is crucial to eliminate the practice of holding licenses without genuine activity, which hampers economic progress.One significant issue is license re-licensing. Speculators often hold licenses only to trade them, which prevents serious players from accessing these resources. By increasing fees, we can deter such practices and ensure that licenses are held by those who are genuinely using them,” he noted.

He commended the Minister of Solid Minerals Development, Oladele Alake, for his efforts to sanitise the sector noting that “the minister’s recent decision to revoke over 2,000 licenses demonstrates a commitment to clearing dormant licenses and ensuring that those who hold licenses are actively utilising them”.

Highlighting government reforms and incentives to support mining, Mr Nkom said;

“The government is implementing the Seven Points Agenda to combat illegal mining, add value, and promote the sector. Miners should reflect on whether they are adhering to regulations. While we cannot monitor every individual, the government is investing in support mechanisms such as the Solid Minerals Development Fund and policy improvements.”

He added that the government is working on revising the laws to make Nigeria a more attractive mining destination.

“Our Mining Cadastral System is already a model for other African countries. By amending the laws, we aim to enhance Nigeria’s appeal to investors and strengthen our position as a leading mining hub in Africa.”