Business

Nigerian Government revokes 5,793 mining licences in six years, operators blame insecurity

Published

3 years ago

September 30, 2021

The Federal Government has revoked at least 5,793 inactive mining licences, Media investigation has revealed.

Our correspondents learnt that the licences that were revoked included mining, exploration, quarry and small scale mining titles.

It was earlier reported that Federal Government issued more than 7,000 licences since the inception of the Nigerian Mining Cadastre Office.

However, in an attempt to reposition the mining sector as a major source of revenue for the country, the Federal Government gathered a list of inactive mining titles for a long, rigorous revocation process.

A highly placed source in the Ministry of Mines and Steel Development confirmed this to our correspondent.

According to a source, who spoke on condition anonymity, said the revocation of licences did not have a yearly pattern as the process was complicated and rigorous.

The source said from the inception of the cadastre office to February this year, 5,793 mining licences had been revoked.

The source said, “The revocation does not happen yearly because this is a complicated, rigorous process. Based on what we have; 5,793 licences have been revoked to date.

“From the inception of the office till February this year, this is the number we have.”

The source further affirmed that the use it or lose it the policy of the Federal Government was still effective, adding that beyond not paying for the renewal of their licences, some licensees who failed to use their licences could get the licences taken from them.

“If they don’t use it, they lose it. When the licence gets revoked, it means they have lost it. Also, those who refuse to pay for their licences will lose it,” the source added.

Revocation of inactive licences is in line with provisions of the laws governing the mining sector.

The Director-General of the Nigerian Mining Cadastre Office, Mr Simon Nkom, had stated that the agency had revoked some inactive mining licences in line with its ‘use it or lose it’ approach.

He had said, “Use it or lose it helps to eliminate speculators. When we give you the licence you either use it or lose it.

“It is on that basis that we have been able to make the system attractive enough for investors to generate more revenue.”

One of our correspondents also examined some signed licence documents on the website of the Mining Cadastre Office.

The documents showed that from November 11, 2015, to June 30, 2021, the number of signed licences had dropped by 5,786.

The number of signed licences dropped from 6650 signed licences as of November 11, 2015, to 1122 signed licences as of June 30, 2021.

Revocation of inactive mining licences was a major recommendation in the report of the Ministerial Committee on Optimisation of Revenue from Mineral Resources.

Headed by Minister of State for Mines and Steel Development, Dr Uche Ogah, the committee was established in 2019 to develop strategies towards improving revenue generation from mineral exploitation.

In its report, the committee advised the ministry to direct the Mining Cadastre Office, the agency that supervises mining licences, to revoke all inactive mineral titles.

The committee stated that revocation of inactive licences would enable genuine investors with the requisite capacity to acquire mining sites and invest in exploration and mining activities.

Speaking on the development, the President of the Miners Association of Nigeria, Kabiru Mohammed, attributed the preponderance of revoked mining licences to inactive mining activities on licensed sites, which he said was a violation of one of the conditions for obtaining a mining licence from the government.

He also stated that the inability of miners to visit or set up structures on the licensed sites was not by choice but as a result of security challenges in the county and restrictions prompted by the COVID-19 pandemic.

Mohammed said, “The licences that have been revoked over the years have seriously affected miners in the country and as an association, we are not happy about it because it is affecting our businesses.

“The government has its reasons for revoking these licences. In most cases, if you are given a licence, there are some conditions for which you are given.

“If you do not comply with the regulations binding on the issued licence the government has the right to revoke.

“However, I want you to understand the challenges of miners in the country. Mining activities in Nigeria has been badly affected by both the banditry, the insecurity and the kidnapping prevalent in the country. The COVID-19 pandemic is also a militating factor.

“These have made most of our miners run away from the mining sites. And the law says if you are inactive and are not using the mining licence, you are liable to revocation. That is why the government is revoking some of our licences.”

He added, “We are appealing to the government to tamper justice with mercy, in the sense that it is not as if we do not want to make use of the mining sites but because of these conditions.

“Nobody can go to the sites now for fear of being kidnapped and even the COVID-19 has made it impossible for a large number of people to congregate in one place.”

When questioned on the implication of a large number of revocations on the mining sector, Mohammed said the Federal Government revoked the licences to serve as a warning to erring miners and could reissue the licences if activities on the sites commenced.

He said, “While the interest of miners is paramount to me, I don’t support them in doing the wrong thing. Even if these conditions that hamper our activities are absent, some miners would still be inactive and there will still be a revocation.

“There are some influential people that acquire many licences without revisiting the sites or setting up any structure. This would attract revocation of these licences.

“So, it is not as if the government intends to pull down the mining sector by revoking licenses but it is a form of sanction, a kind of wake up call to inactive miners.

“However, because the issue of insecurity and the pandemic is very real, the government should soft-pedal on miners at the moment.”

The Federal Government, on its part, has been engaged in several activities to encourage more investors in the mining sector.

The government had tried to strengthen bilateral relations with countries, such as the UK, Korea and Russia to boost the Nigerian mining sector.

The Federal Government said as part of the Nigerian Mineral Exploration Project, it invested $50m on certain minerals to create visibility, adding that the data would be released to the market and auctioned to interested investors.

Also, with support from the World Bank, the government recently launched Airborne Geophysical Survey in 19 states.

The essence was to provide more data on the minerals in Nigeria to attract more investors with the collated data.

Punch

Related Topics:5793 mining licences Accessmagazine Accessnews FG insecurity NewsUpdate Nigerian Government operators Pandemic revokes six years

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Business

Businesses count losses amid power outage in Bauchi, Gombe, and Jigawa

Published

3 weeks ago

October 28, 2024

Matthew Eloyi

Business owners in Bauchi, Gombe and Jigawa are recording losses due to week-long blackout ocassioned by vandalism of the power transmission line in parts of northern Nigeria.

The sudden disruption in electricity supply in the past days, also affected essential services such as water, sanitation, street lighting and healthcare delivery as most hospitals have been operating without light.

Some of the affected businesses including shop keepers, millers and artisans, who spoke while reacting to a survey by the News Agency of Nigeria (NAN), described the situation as “pathetic”.

The survey examined the perennial collapse of national grid and the need for alternative power supply in the country.

Rice millers in Gombe had decried the impact of the erratic power supply on their businesses.

A Miller, Musa Arab, at Nassarawo Industrial Layout in Gombe, said the trend was crippling their operations as they relied on electricity supply from the grid to process paddy.

He said the mills were not operational power outage as they could not afford exorbitant pump prices of petrol or diesel to run their machines.

This, he said, reduced the volume of rice supply to the market and posed serious challenge to food security.

“We must invest in power because it is the biggest determining factor for industries to thrive.

“I have over 20 workers in my mill, and we have 100 mini rice mills here, so you can imagine those who have no jobs for the past 10 days.

“Government must go tough on those responsible for the perennial grid collapse because some persons may be benefitting from it,” he said.

Also, Yusuf Ibrahim said the situation might trigger the already fragile inflation, as prices of local varieties would shot up ocassioned by the diminish supply.

He said that some had jerked up their charges to cover the expenses on diesel thereby affecting rice prices.

A check by NAN at the Gombe Main market showed that a 100 kilogramme of rice was sold for between N120,000 and N160,000, as against N110,000 and N150,000, before the blackout.

Mr Usman Sani, a rice dealer, attributed the hike in price to low supply of the produce to the market in spite of the number harvest recorded this cropping season.

He said the prices had decreased slightly at the onset of the harvest, however, it showed sprawling increase due to power outage.

“The price of rice is already dropping as a result of harvest but the trend reverse since the blackout in the past days “ he said.

Ugochukwu Daniel, a bartender in Bauchi, decried the epileptic power supply in the country, adding that lack of durable energy supply would retard Nigeria’s quest to attain social and economic greatness.

Daniel said that she spent much on fuel to run power generator for refrigrator and lightening the beer parlour, to enable her to keep the business running.

He said that businesses could only thrive in an enabling environment with stable electricity supply, to enhance wealth creation and reduce poverty among Nigerians.

“My trade is about chill drinks and it survives on electricity to operate otherwise you will out of bussiness.

“Without electricity there is nothing you can do, and not only business but about everything. We depend on it,” he said.

Similarly, Samuel Adamu, said the persistent power outage had forced him to patronised charcoal for ironing clothes in spite of its high cost and cumbersome processes.

He said that most cleaners in the area had resorted to fabricated iron charcoal in spite of hike in its prices which suddenly jumped from N5,000 to N15,000.

Adamu said the situation also encouraged division of labour in laundry to cut cost and make some gains.

“Presently, I do wash the cloth, and engage someone for ironing. The charge is N300 per set as against N150”.

While advocated development of renewable energies to enhance power supply in the country, Adamu urged security agencies to entensify efforts towards electrical installations in the country.

In the same vein; Mr Muhammad Adamu, Chairman, Jigawa State House Assembly Commitee on Power and Energy, said the Jigawa Electricity Law 2024, made sound provisions to improve power generation and distribution in the state.

This, he said, was an offshoot of the devaluation brought about by the 5th alteration of the constitution, where removed power from the executive legislative list and to the concurrent list.

“It empowered the state houses of assembly to enact laws on power.

“The committee has also carefully pursued the bill and reviewed its structure and the promise it holds for the state power sector, infrastructure and the overall economy of the state.

“The new law will pave way for the establishment of Jigawa Electricity Commission, to regulate the state’s electricity market,” he said.

According to Adamu, the law will protect residents and investors in the energy sector through ensuring prepaid meter installation and possibility of recouping investor’s funds as well as address vandalism.

“The law will lead to provision of reliable, affordable and sustainable power, essential for development of all sectors of the economy, particularly in rural areas,” Adamu said.

“Vandalism will be over because we pay Kano Electricity Distribution Company (KEDCO) money for powered supplies, but whenever there is problem of damages or broken down transformers, it is either the communities or individuals that pay for the repairs”.

Business

Mercedes urges delay of EU tariffs on Chinese electric vehicles

Published

4 weeks ago

October 21, 2024

Matthew Eloyi

Mercedes urges delay of EU tariffs on Chinese electric vehicles

The head of German luxury carmaker Mercedes-Benz, has called for the European Union to de-escalate the dispute with China over tariffs on electric cars.

“We need more free trade instead of new trade barriers.

“That is why it is important to find a solution that suits both the EU and China,” chief executive Ola Källenius told the Monday edition of Bild newspaper.

“The negotiations for this take time. In order not to jeopardise them, the EU should postpone the enforcement of the planned tariffs,’’ he said.

At the start of the month, a majority of EU countries paved the way for additional tariffs of up to 35.3 per cent on battery-powered electric vehicles imported from China.

Germany, however, voted against the measure amid concerns over retaliatory actions which could hurt the country’s giant car industry.

The European Commission had pressed for extra tariffs after an investigation accused Beijing of subsidising domestic electric car manufacturers, and thus distorting the market in the EU.

But whether the import tariffs would actually come into force at the beginning of November is still up to the commission.

The plans can still be dismissed if Brussels reaches a solution with China at the negotiating table.

Business

ACCI moves to promote business connections, balance work-life

Published

1 month ago

October 16, 2024

Matthew Eloyi

ACCI moves to promote business connections, balance work-life

The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.

The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.

Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.

He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.

“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.

“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.

“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.

“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.

According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.

“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.

“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.

“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.

“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.

The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.

Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.

He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.