Government Takes Action Against Mining Licence Defaulters
The federal government has recently implemented measures against operators who have failed to pay required service fees for mining licenses, resulting in the revocation of 1,633 licenses. This decision was made in accordance with sections 11 and 12 of the Nigerian Mineral Mining Act (NMMA), 2007 after a 30-day notice was provided to the defaulters.
This action follows the initiation of the process to revoke 2,213 titles by the Mining Cadastral Office (MCO) on October 4, 2023. These include 795 Exploration titles, 956 Small Scale Mining Licences, 364 Quarry licences, and 98 Mining Leases, as detailed in the Federal Government Gazette Number 178, Volume 110 of October 10, 2023.
Following the 30-day notice period, only 580 title holders responded by settling their debts, leading to the recommendation of the revocation of 1,633 mineral titles, including Exploration Licence, Quarry Licence, Small Scale Mining Licence, and Mining Lease.
Minister of Solid Minerals Development, Dele Alake, emphasized that the revocation of defaulters’ licenses is an ongoing process aimed at creating opportunities for serious prospective investors in the mining sector. Furthermore, efforts are underway to penalize operators who fail to pay royalties, taxes, and other financial obligations to the government.
In order to address illegal mining activities, Alake warned that unauthorized miners will face consequences for their actions, and measures are being taken to establish a mine police force to address security issues in the mining sector.
It is evident that the government is committed to ensuring compliance with mining regulations and fostering a conducive environment for potential investors in the mining sector. The revocation of licenses due to non-compliance with financial obligations is expected to serve as a deterrent to other operators, while opening up opportunities for more responsible investment in Nigeria’s mining industry.
