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May 11, 2025

How reduced litigations, digitization led to ₦6.95bn revenue in Q1 – Mining Office

How reduced litigations, digitization led to ₦6.95bn revenue in Q1 – Mining Office

By Omeiza Ajayi

ABUJA: Nigeria’s Mining Cadastre Office (MCO) has announced revenue exceeding ₦6.95 billion in the first quarter of 2025, attributing the achievement to digitization, increased transparency, and a reduction in litigations.

The Director-General of the agency, Engineer Obadiah Simon-Nkom, revealed in an interview that the impressive revenue performance was bolstered by sweeping reforms, digital transformation, and strategic licensing practices introduced under his leadership.

He explained that the implementation of a fully digitized licensing platform, EMC+, operational since November 2022, has become the exclusive channel for all mineral title applications and transactions in Nigeria, significantly enhancing revenue collection.

“The only channel for submission is the EMC+ system. It is completely online—transparent, efficient, and real-time,” Simon-Nkom said.

The DG noted that these efforts are part of broader reforms inspired by the 7-point agenda of the Minister of Solid Minerals Development, Mr. Dele Alake, aimed at curbing illegal mining, boosting investor confidence, and sanitizing the sector.

“We are no longer just hopeful. We are witnessing the realization of a vision that is transforming Nigeria’s mining industry,” he remarked.

Simon-Nkom added that the agency has transitioned from its outdated polygon-based licensing system to a modern, web-based electronic mining cadastre system that tracks every stage of the application process, improving transparency and reducing opportunities for human manipulation.

“What we see here in Abuja, applicants can see from anywhere in the world. The MCO works closely with agencies such as the ICPC, EFCC, DSS, NFIU, NEITI, and Civil Defence. The ICPC recently cleared the office of compliance concerns and commended its digitization efforts. The NFIU, in particular, views licensing agencies like the MCO as critical to Nigeria’s efforts to exit the global Financial Action Task Force (FATF) Grey List,” he added.

On how the MCO increased its revenue, Simon-Nkom explained that the growth was driven by system-governed fees, including annual service fees, processing charges, late renewal penalties, and search/certification charges.

“Out of 955 applications received in Q1, 651 were for exploration licenses—an expected trend given exploration’s role as the foundation for viable mining projects.

“The principle remains, ‘Use it or lose it.’ We are no longer in an era where people hoard vast mineral-rich lands without development. If the deposit is not economically viable, surrender the title and move on,” he emphasized.

The DG also highlighted that the agency recalibrated land charges to match usage realities, ensuring that license fees are proportional to the size of the land held.

“If you want to hold 200 square kilometers, you’ll now pay proportionately. No more paying the same fee as someone holding 20 square kilometers.”

He further disclosed that 152 license modifications were processed in Q1, covering mineral changes, relinquishments, transfers, and renewals, noting that this has become a strategic tool for streamlining the licensing system, encouraging operational mines, and eliminating speculators.

“In line with international practices, the MCO is also reviewing policy frameworks to mandate partial relinquishment of land after the first renewal, a move aimed at optimizing land utilization and increasing access for serious investors,” he added.

Apart from establishing zonal offices to decentralize its processes, the MCO has also played a quasi-adjudicatory role in resolving land disputes and community-related mining issues.

Simon-Nkom noted that these efforts have helped to de-escalate potential litigations, ensuring smooth sector operations. He proudly stated that the MCO has maintained a 100 percent litigation success rate due to strict adherence to the law and effective conflict resolution mechanisms.

“Even where we have made mistakes, we correct them in line with the law. That is why litigants often return to settle out of court,” he concluded.