Federal Government Revokes 1,633 Mining Licences Due to Non-Payment of Administrative Fees

The federal government has taken a decisive step by revoking a total of 1,633 mineral titles from mining companies that failed to pay the stipulated administrative fees. The announcement was made by the minister of solid minerals development, Dr Dele Alake, during a press briefing at the ministry’s conference room in Abuja. Dr Alake emphasized the importance of honoring financial obligations to the government and warned that the ministry will enforce the revocation order to ensure compliance.

The minister expressed disappointment at the refusal of the affected mining companies to pay the annual charges, despite the relatively low amount compared to their profit margins. In response to this, the ministry plans to review the mineral title fees upwards, considering the significant technological and infrastructural investments made in the sector.

Dr Alake explained that the Mining Cadastral Office, the agency in charge of mineral title administration, is authorized by the Nigerian Minerals and Mining Act, 2007 to collect fees for processing applications and annual service fees for administrative and management services. He further emphasized that the failure to pay these fees is a breach of legal obligations.

The government has followed the stipulated legal guidelines in the mining law in revoking the 1,633 licences, as mandated by the NMM Act 2007. The minister detailed the legal process followed, highlighting the written notices and the expiration of the mandatory 30-day period before the revocation.

The revocation of these titles is part of an ongoing effort to enforce compliance and ensure that the mining sector becomes a major revenue base for the country. Dr Alake also issued a stern warning to illegal miners, emphasizing the commitment of the government to sanitize the sector and curb economic sabotage.

In conclusion, the federal government’s action to revoke the mineral titles serves as a clear message that compliance with financial obligations is essential for companies operating in the mining sector. The government’s commitment to enforcing legal guidelines and promoting the sector as a key revenue source underscores the significance of this decision.