Nigeria Generates N16.3 Billion in Mining Royalty Revenue within One Year
The Nigerian government has recorded a significant milestone in its mining sector, generating a total of N16.3 billion from mining royalty and related fees over the span of one year. This revenue was accrued through the diligent efforts of the Mining Cadastral Office (MCO), an agency operating under the Federal Ministry of Solid Minerals Development, entrusted with the administration of mineral titles.
Dr. Dele Alake, Minister of Solid Minerals Development, revealed this achievement during a sectoral updates series held in Abuja to commemorate the first anniversary of President Bola Tinubu’s administration. Dr. Alake disclosed that the revenue was generated between May 2023 and April of the subsequent year, surpassing the agency’s target by N6.7 billion.
Furthermore, Dr. Alake highlighted the ministry’s overall positive performance, indicating that it generated N14.9 billion by the end of December 31, 2023, representing a 72.1 percent positive variance and a remarkable 172.1 percent performance against the annual budgetary target for the same year.
In fostering exploration and development, the ministry collaborated with GeoScan Gmbh to harness innovative technology for exploring Nigeria’s critical mineral resources. Additionally, the ministry struck a deal with the African Finance Corporation to raise a project development facility aimed at assisting companies facing capital challenges in executing early-stage exploration projects.
Dr. Alake emphasized the ministry’s commitment to leveraging partnerships, such as with the global exploration agency XCalibur, to enhance Nigeria’s geological data capabilities and attract foreign direct investment in critical mining projects. Despite budgetary constraints, the ministry proposed a N70 billion exploration funding project to address challenges in mineral exploitation, underscoring its determination to advocate for necessary resources.
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Moreover, Dr. Alake commended the Nigerian Geological Survey Agency (NGSA) for its relentless research efforts to understand Nigeria’s mineralogy, despite financial limitations. He cited various initiatives undertaken by NGSA, including regional mapping and geochronological sampling, as part of its ongoing endeavors to unravel the country’s mineral potential.
This significant progress underscores Nigeria’s commitment to harnessing its mineral resources for sustainable economic growth and development.
