Nigeria’s Federal Government Takes Action Against Mining Licence Defaulters
The Federal Government of Nigeria has officially announced the revocation of 1,633 mineral titles due to the failure of mining operators to pay their annual fees. This decision was made by the Ministry of Solid Minerals Development, as disclosed by the ministry’s representative, Dr Oladele Alake, during a press briefing in Abuja.
The number of revoked licences this year is significantly lower than the 3,402 mineral titles that were revoked last year. According to the minister, the Nigerian Minerals and Mining Act (NMMA) 2007 requires mining operators to pay an annual service fee at a fixed rate. It has been observed that some firms are not adhering to this legal requirement.
Various fees are in place for different cadastral units, with annual payments as low as N1500. Dr Alake expressed disappointment over the lack of compliance, citing the discrepancy between the profits generated from mining activities and the refusal to make necessary payments to the government.
He emphasised that the amount requested from mining companies is minimal in comparison to their revenue projections. Despite this, a significant number of operators have failed to meet their obligations. The Minister warned that failure to comply with payment requirements would result in the revocation of mining licences.
The Ministry’s effort to ensure adherence to the law includes sending out a 30-day notice to defaulting parties. If such parties fail to make any payment within the warning period, their licences become liable to revocation. Only 580 titleholders responded to the notice and paid their annual fees, out of the 2,213 titles that were granted a 30-day notice.
In line with the powers conferred by the NMMA 2007, Section 5 (a), the Ministry approved the revocation of 1,633 mineral titles, consisting of Exploration Licences, Quarry Licences, Small Scale Mining Licences, and Mining Leases. The ministry also issued a warning to those whose licences have been revoked, advising them to vacate mining sites in order to avoid apprehension by security agencies.
It is evident that the Federal Government is taking a strong stance against defaulters in the mining sector, ensuring that legal requirements are properly met. The ministry’s decision to revoke over a thousand mineral titles serves as a reminder to all mining operators to fulfil their financial obligations to the government. Failure to do so will result in the loss of valuable mining rights, as well as potential legal consequences.
It is essential for mining companies to conduct their operations in a lawful and responsible manner, and part of this responsibility involves the timely payment of annual service fees. The government’s commitment to enforcing compliance within the mining industry is crucial for maintaining accountability and transparency, and it is expected that all stakeholders will take heed of the recent developments.
