Mine & Steel revenue rises by N5bn to N7bn in six years — Minister
…As Mining Cadastre Office records 86% growth in revenue generation
…President Buhari declares Segilola, Osun as Nigeria’s world-class gold mine
By Gloria Akudoro, Abuja
The Minister of Mines and Steel, Mr Olekan Adegbite at the ongoing 6th edition of the Mining Week has announced increase in revenue of the Ministry from N2billionto N7billion between 2015 and 2021. Part of the Ministry’s achievements was the 86 per cent growth in revenue generation.
This was disclosed by Director General, Nigeria Mining Cadastre Office, Engr. Simon Nkom in Abuja yesterday following the opening of the 3-day 6th edition of the Nigeria Mining Week 2022 by President, Muhammad Buhari on Tuesday.
Speaking during the opening ceremony of Nigeria Mining Week, Nkom expressed fulfillment in the achievements so far. He said the launch of the Electronic Mining Cadastre Plus (EMC+) is indeed the starting point of the agency.
While disclosing the revenue generated despite the challenges as part of the achievements, the DG, stated that the agency witnessed swift growth in revenue generation since 2019 to date. He added that about 86 per cent of the annual revenue was generated in 2021 through licensing and annual fees which added to the sustainable development of the nation.
He disclosed that EMC+ is a system which enables fast and seemless online administration and management of mineral titles in an efficient and transparent manner throughout the life cycle of the titles.
Nkom also revealed that, upon the completion of the EMC+ project, the international peer reviewer was engaged by the world bank who attested to the efficiency of the functionality of the new system and has been attested satisfactory.
“It enables investors both local and international to register online at the very comfort of their homes using any of the home devices without the need to travel down to Nigeria and the local investors will have to tender issues at the zonal office of their states. The electronic filling system was initially computerized but we have now migrated to an online system which simply means, you
can be anywhere in the world to register and get your license.”
Describing how it works, the MCO DG, explained that investors need to create username and password and ensure they abide by the system instructions which is in line with the law and international best practices. Adding that the system is linked to the Ministry’s web portal.
On the benefits, Nkom said EMC+ will go a long way to ease ways of doing business, increase transparency, save time and money especially on travel logistics and also encourage foreign investment into the sector. He said it also avails Nigeria the opportunity to become one of the international players as well as boost the GDP of the country.
The highlight of the event was the commissioning of the Electronic Mining Cadastre Plus – EMC+ and a tour with the Vice President, Minister and entourage round the mining companies exhibition stands.
Also, the President who spoke through the Vice President, Yemi Osinbajo, in Abuja commended the host Ministry, Mines and Steel Development, PwC and Vuka for faithfully organizing this event in the last 6 years and showcasing Nigeria’s mineral assets and its dynamic mining ecosystem to potential local and international investors.
President Buhari revealed that since 2015, his administration had intentionally prioritized the development of the country’s mineral resources as one of the frontiers for economic growth leading to the comprehensive Roadmap for the Growth and Development of the Nigerian Mining Sector and we have steadily followed the steps set out in the roadmap.
“So far, we can say without fear of contradiction that this administration has committed more resources to the development of the mining sector than any other government in the history of this country. And we are proud that the indices of development in the sector are rapidly changing,” he noted.
He attributed the success to the increased revenue generation and unprecedented investment interest that the industry has attracted in the past few years. He said Nigeria, for the first time, now have a world-class gold mine in Segilola, Osun state operated by Thor Exploration and Eta Zuma Mining and Industries Limited, Mosra Enerji are mining and supplying the coal needs of Dangote and Bua Cement factories.
Under the steel industry, the President revealed that African Natural Resources and Mines limited who are owners of the Kagarko Integrated Steel plant, is about to produce liquid Steel from its Iron ore mine in Kaduna State a d also several other investors are at different stages of mine development in various parts of the country, and these strategic milestones will hopefully catalyse more mining investment in the country.
He however expressed optimism that the sector will outstrip other sectors of the economy in export earnings, and the creation of good paying jobs and opportunities when fully developed which will also stimulate industrial growth as a local source of raw materials and improve the quality of lives in rural communities .
President Buhari who affirmed that the vision of the country can never be industrialised without a vibrant steel sector, said the administration has therefore prioritized the resolution of all the issues constraining the full operation of the Ajaokuta Steel Company and “to this end a transaction adviser has been appointed to concession the Ajaokuta Steel Company and the Nigerian Iron Ore Mining Company Itakpe. The selection process is ongoing. Our commitment is to break the jinx and actualise the dream of a vibrant steel sector”.
While listing the thematic activities done so far, he reiterated responsibilities of both as public and private sector entities for the issues of sustainable development and climate change. He added that the extraction of mineral commodities entails considerable impact on land, water, air and other environmental assets that are central to human living both now and in the future.
“The painful experience of the negative impact of oil and gas exploitation in the Niger Delta cannot be ignored. Therefore, all operators in the mining sector are obliged by law ethics, and our responsibility for the future, to ensure that proper environmental, social and governance principles are practiced in the sector,” said the President.
Buhari however reiterated government commitment to continue to intensify in aspect of regulatory and supervisory towards ensuring mining Is held to the highest standards of sustainable development and intergenerational equity.
In his speech, the Minister of Mines and Steel Development, Arc. Olamilekan Adegbite, expressing appreciation to this year’s organizer and sponsors, said the ministry is working in line with the mandate of Mr President administration towards reposition the mining sector within the framework of its economic diversification policy to become one of the frontiers of sustainable economic growth and rejuvenate the sector into a globally competitive nation that’s capable of contributing to wealth creation, providing jobs and support to industrialization in a conducive environmental and social ecosystem.
“It will be recalled that this administration inherited some key legacy issues that are fundamental to the growth of the Mining Sector. This Ministry had to crystalize various strategies to address the lack of geological data, weak institutional capacity to govern the sector, low revenue generation, informal mining and community issues, and the protracted litigations on the nation’s steel assets.
With the unprecedented support and direction of President Muhammadu Buhari, GCFR, and the National Assembly, the Ministry has recorded some significant achievements that has defined a growth trajectory for the Nigeria Mining Sector,” the Minister revealed.
The Minister during the opening highlighted some Ministerial deliverables targeted to attract investors into the huge markets in the Nigeria’s Mineral value chain which includes: Up-grade and Automation of the Mining Cadastre Office and the creation of Zonal Offices in all the Geopolitical zones in the country; Generation of Geological and Exploration Data to improve investment competitiveness; Application of Digital Processes in the Governance of the Sector; Advancing the formalization of information mining operations in Nigeria. Artisanal and Small-Scale Mining operations constitute over 80 per cent of Nigeria mining.
Others are: Improving the Environmental Impact; Strategic Partnerships; Construction of Mining-related clusters in the six geopolitical zones of Nigeria; Establishment of a jewelry making Training Centre in Abuja where forty (40) Train the Trainers, recruited from the thirty-six (36) states and FCT have been trained; Resuscitating the Ajaokuta Steel Company and the National Iron Ore Mining Company; Constituted and inaugurated the National Steel Council as an integral stakeholder in the development of Steel Industry amongst others.
While promising to intensify effort in making the mining sector more competitive in the global mining space, satisfy the needs of our domestic global goals, Adegbite disclosed that the Ministry has witnessed a sporadic increase in its revenue generation from two billion Naira in 2015 to over seven billion in 2021 indicating a major increase in mining activities in the field.
Earlier, the Acting President Miners Association of Nigeria, Alhaji Musa Muhammad expressed profound appreciation to the leadership role of the Minister and its Agencies for putting together thoughts and aspiration of all into actionable plans towards repositioning the sector.
He also extended his gratitude to the event managers (Vuka Group) and content developer (PwC) for having taking care of the event in a professional manner.
