The mining and quarrying sector recorded a contribution of N5.37tn to the countries Gross Domestic Product (GDP) in 2021, according to the National Bureau of Statistics (NBS).
This was according to the data obtained from the Gross Domestic Product for the year under review. The N5.37tn was a decline compared to the N5.82tn recorded in 2020.
In this sector, there are four subsectors, which include crude petroleum and natural gas, coal mining, metal ores, and quarrying and other minerals. The crude petroleum and natural gas subsector has a higher contribution of N5.24tn.
The coal mining subsector contributed N7.71bn, metal ores subsector contributed N8.33bn, while the quarrying and other minerals contributed N111.09bn.
On the sector, the report read, “In real terms, the mining and quarrying sector grew by –6.16 percent in the fourth quarter of 2021. Compared to the same quarter of 2020 and third quarter 2021, it was higher by 12.28 percentage points and higher by 4.40 percentage points respectively.
“Quarter on quarter, growth rate recorded was -21.33 per cent, while annual growth stood at -7.79 percent in 2021.
The contribution of mining and quarrying to Real GDP in the quarter under review stood at 5.50 percent, lower than the rate of 6.09 percent recorded in the corresponding quarter of 2020 and lower than the 7.66 percent recorded in the third quarter of 2021 respectively.”
The Ministry of Mines and Steel has the legislative mandate to regulate mining, but many states and local governments have embarked on the imposition of their own rules and regulations, including the issuance of registration, permits, community development agreements, and Memorandum of Understanding on miners.
Under the ministry, there is the Mining Cadaster Office, which is responsible for the management and administration of mineral titles.
The agency also keeps a chronological record of all applications for mineral titles in a priority register, which ensures the agency treats all applications on a first come first served basis and equally applies the principle of ‘use it or lose it’ to mineral titles.
In July last year, the MCO’s Director-General, Simon Nkom, said that the office generated over N10.73bn since 2016 from licenses to mining companies.
He had said that N1.15bn revenue was generated in 2016, N2.13bn in 2017, N1.55bn in 2018, N2.58bn in 2019, N2.30bn in 2020, and N2.02bn from January to May 2021. It was also stated that poor management, double taxation, and the activities of illegal miners was plaguing the mining sector in the country.
According to him, some state governments, in order to shore up their revenues, impose illegal fees, taxes, and levies on foreign and local licensed mining companies and operators.
On mineral titles obtainable in the country, he mentioned the Reconnaissance Permit, Exploration License, Small Scale Mining Lease, Mining Lease, Quarry Lease, and the Water Use Permit.
On the website of the MCO, there are currently 6,376 active mineral titles, which include 2,502 exploration licenses, 2,097 quarry leases, 1,522 small-scale mining leases, and 255 mining leases.
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