The Director General of the Mining Cadastre Office (MCO), Obadiah Simon Nkom, has stressed that mining operations in Nigeria are only legal when properly licensed, warning operators against engaging in unregulated activities.
Mr Nkom, an engineer made this clear while speaking at the NASD-SMDF webinar on unlocking Nigeria’s solid minerals potential through the capital market, where he outlined the licensing requirements guiding mining operations under the Nigerian Minerals and Mining Act (NMMA), 2007.
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According to him, the MCO remains the regulator responsible for managing and granting mineral titles in Nigeria, and compliance with the licensing regime is critical to ensuring transparency, accountability, and sustainable growth in the sector.
“Mining assets are only legal if licensed,” Mr Nkom stated. “Each licence comes with defined parameters, obligations, and requirements that must be adhered to by operators.”
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Licence Categories
The MCO director -general explained that a Mining Lease (ML) covers an area of 50 km² with a maximum of 250 Cadastral Units (CU). It permits operations ranging from mineral exploration and beneficiation to processing and contract mining.
A Quarry Lease (QL), on the other hand, is granted for smaller areas of up to 5 km² with a maximum of 25 CU. It authorises the extraction of quarriable minerals such as asbestos, china clay, limestone, and sand, which are primarily used for construction.
For artisanal and small-scale operators, a Small Scale Mining Lease (SSML) covers an area of 3 km² with a maximum of 15 CU. It applies to mining activities using low-level technology and modest expenditure.
Compliance Requirements
Mr Nkom further emphasised that securing a lease or licence goes beyond paperwork. Applicants are required to submit pre-feasibility studies and a minimum work programme to demonstrate readiness and technical capacity.
“The minimum work programme must be stamped and signed by a registered member of the Council of Mining Engineers and Geoscientists (COMEG), clearly stating the minerals to be explored, quarried, or mined,” he said.
By laying out these regulatory requirements, the MCO aims to professionalise Nigeria’s mining sector, curb illegal mining, and provide clarity for investors and operators seeking to participate in the solid minerals value chain.
Industry stakeholders at the webinar agreed that a transparent licensing framework is critical for building investor confidence and aligning Nigeria’s mining sector with global standards.
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