Nigeria Cracks Down on Inactive Miners, Revokes 924 Licences

The Honourable Minister of Solid Minerals Development, Mr. Dele Alake, convened a press conference in the capital city of Abuja to publicly declare the Nigerian government’s decision to invalidate 924 licences of inactive miners as part of an initiative to purify the nation’s mining sector. The licences that have been revoked encompass those for exploration, mining, small-scale mining, and quarrying.

Mr. Alake articulated that the annulment of these licences is an integral aspect of the government’s ongoing endeavours to purify and rejuvenate Nigeria’s mining industry. He underscored that this decision was executed in compliance with legal provisions and subsequent to providing the affected miners with adequate notification via the official Gazette of the Federal Republic of Nigeria, No. 227, which was promulgated on December 27, 2023.

The Minister accentuated that 963 licensees were apprised of the impending revocation and were allotted a 30-day timeframe to rectify their dormant status and justify their inactivity. Regrettably, a mere 39 of the impacted miners promptly remedied their situation or submitted valid explanations for their hindered operations.

Of the 924 dormant licences that were ultimately invalidated, 528 pertained to exploration, 20 were mining leases, 101 were related to quarrying, and 273 were Small Scale Mining Licences (SSML). Mr. Alake further expounded that the holders of the invalidated licences have been given a 30-day period to reclaim them by remitting fines.

For the revoked Mining Licenses, a fine of N10m applies; N7.5m for Small Scale Mining License (SSML) while N5m for Exploration License (EL). They are obligated to remit the stipulated payments within 30 days in order to be eligible for reconsideration. Prospective investors from all corners of the globe are now at liberty to submit applications for any of the affected Cadastral Units on a ‘first come, first served’ basis.

The Minister expressed his conviction that this decision would contribute to cleansing the licensing system by penalizing those who have exploited the sector’s opportunities for personal gain, and transforming it into a commercialized marketplace.

This initiative by the Nigerian government underscores its commitment to promoting responsible and sustainable mining practices, and fostering a level playing field for all stakeholders within the sector. The Minister’s proclamation represents a clear directive to miners and investors alike that adherence to regulations and active engagement in the sector are non-negotiable.

In conclusion, the revocation of dormant mining licences mirrors the government’s resolve to overhaul and invigorate Nigeria’s mining industry, rendering it more appealing to local and foreign investors. By taking decisive measures to address inactive licences and accommodating new applications on a ‘first come, first served’ basis, the Nigerian government is paving the way for a transparent, competitive, and flourishing mining sector.