Nigeria’s Government Takes Action Against Mining Licenses
The Nigerian government has taken a significant step by revoking a total of 1633 mining licenses due to the failure of operators to pay the required service fees. Minister of Solid Minerals Development, Dr. Oladele Alake, announced this decision during a press conference in Abuja, the nation’s capital. The revocation was deemed necessary following the expiration of the thirty-day notice given to defaulters, as stipulated by sections 11 and 12 of the Nigerian Mineral Mining Act, NMMA, 2007.
The Mining Cadastral Office (MCO) initiated the process of revoking 2,213 titles on October 4, 2023. These included 795 Exploration titles, 956 Small Scale Mining Licenses, 364 Quarry licenses, and 98 Mining Leases. The notice of revocation for defaulting in the payment of Annual Service Fee was officially published in the Federal Government Gazette Number 178, Volume 110 of October 10, 2023.
Dr. Alake revealed that after the mandatory 30 days had expired on November 10, 2023, only 580 title holders responded by settling their indebtedness. Therefore, the MCO recommended the revocation of 1,633 mineral titles for Exploration License, Quarry License, Small Scale Mining License, and Mining Lease. Following the powers conferred on him by the Nigerian Minerals and Mining Act 2007, Dr. Alake approved the revocation of the 1,633 titles. He warned the previous holders to vacate the relevant cadaster immediately, as security agencies would work with the Mines Inspectorate of the Ministry to apprehend any defaulter found on the revoked areas.
Dr. Alake expressed his dismay at the unwillingness of corporate bodies making huge profits from mining to pay a measly annual service fee of N1,500 only. Efforts are on the way to sanction other operators defaulting in payment of royalties and taxes, creating space for serious prospective investors to enter the sector.
The companies’ refusal to pay the government its due is indeed unacceptable, especially when considering their revenue projections. The principle of larger area titles incurring higher fees was designed to prevent applicants from holding more than they need to explore. He urged law-abiding titleholders not to hesitate to fulfill their obligations. On the issue of illegal mining, Dr. Alake warned the culprits that their days are numbered. The government is committed to dealing ruthlessly with those who refuse to adhere to regulations, in alignment with President Bola Tinubu’s dedication to sanitizing the mining sector.
Dr. Alake also revealed plans for the establishment of Mines Police and shared that the military will conduct initial clearance operations to prepare for the deployment of the Mines Police. He appealed to stakeholders for their cooperation in achieving these goals and urged those who have conducted business in the sector in an improper manner to turn over a new leaf.
In summary, the Nigerian government is taking decisive action to ensure compliance with mining regulations. The revocation of the licenses is a strong step towards creating a more transparent and responsible mining sector, benefiting both the government and prospective investors.
