The federal government generated N2.15 billion between 2011 to 2013 from issuing mineral titles to mining companies, the Nigeria Mining Cadastre Office said in Abuja on Monday.
Mohammad Amate, the Director of the agency, who made the disclosure explained that the office generated N700 million annually from processing fees and service fees on mining titles.
He said that in 2011, the office generated N700 million, a feat it repeated in 2012.
” From 2013 to date, we have realised about N750 million though we are yet to conclude our revenue generation profile. By the time we conclude; we are thinking of generating close to N800 million while our projection for 2014 is one billion naira,’’ Amate said.
He said that the challenges facing the sector include funding, issues relating to consent from host communities, the lack of adequate documentation accompanying application, illegal mining among others.
“Mining is a long gestation period kind of investment. Mining is not the kind of investment you can start now and it starts yielding fruit next year. As a result the long gestation, the banks are not keen to finance mining projects,’’ he said.
He said that recently the Ministry of Mines had a forum with the chief executives of the banks on the need for their organisation to support the mining sector.
“Very soon you would find out that the banks are going to be financing mining projects as modalities are being worked out,’’ Amate said.