Senate C’ttee Backs Mining Sector Overhaul, NMCO Hits Revenue Milestone

Folalumi Alaran in Abuja

The Senate Committee on Solid Minerals has pledged to reform Nigeria’s mining industry to boost economic growth and implement stricter regulations.
The Committee’s Chairman, Senator Sampson Ekom,  made this commitment during an oversight visit to the Nigeria Mining Cadastral Office (NMCO) in Abuja.
He emphasised the committee’s dedication to strengthening the sector’s contribution to the nation’s economy.
” Our goal is to ensure Nigeria maximizes the benefits of its mining industry. The Senate prioritises this oversight visit to assess the agency’s operations before finalizing budget allocations,” he said.
Ekom highlighted NMCO’s crucial role in Nigeria’s economic diversification efforts. He emphasised the need to diversify the economy beyond oil and recognised NMCO’s pivotal role in achieving this goal.
“This agency is vital to our diversification strategy. How can we diversify without NMCO? This office is essential to the mining sector and, consequently, to our nation’s economic resilience,” he added.
He also called for increased collaboration among stakeholders to foster sustainable growth. “This visit will identify opportunities to deepen sector reforms, and it’s crucial to strengthen collaboration among agencies and stakeholders,” he said.
During the visit, Nkom presented a comprehensive report on the agency’s performance. He revealed a significant revenue achievement of N8.2 billion in October 2024 alone.
This remarkable increase, he said, underscores Nigeria’s commitment to enhancing the mining sector as part of its economic diversification agenda.
“The revenue generated in October 2024 is a milestone that reflects the sector’s growth and the agency’s dedication to regulatory improvement,” Nkom stated. He attributed the revenue surge to improved transparency, digitalisation, and streamlined licensing and revenue collection processes.
Nkom shared a historical overview of NMCO’s revenue growth, showcasing the upward trajectory since 2019: N2.38 billion in 2019, N2.56 billion in 2020, N4.3 billion in 2021, N3.79 billion in 2022, and N6.07 billion in 2023.
With a cumulative revenue of N36.05 billion generated to date, NMCO, he stressed, has made significant contributions to Nigeria’s Treasury Single Account (TSA), ensuring all earnings directly support the nation’s financial infrastructure.
The Director General further explained that NMCO’s revenues from 2019 to October 2024 amounted to N26.23 billion, representing 75 per cent of the agency’s total revenue.
 From 2023 to October 2024, the agency generated N13.19 billion, a 63 per cent increase over the corresponding period from 2021 to September 2022, when it recorded N8.1 billion.

He elaborated on NMCO’s efforts to maintain industry transparency and efficiency, emphasizing the importance of reducing processing times for licenses and permits.

“Our initiatives ensure equitable mining rights distribution, which bolsters trust in the regulatory system and supports the industry’s sustainable growth,” he added.