The Federal Government Takes Action Against Dormant Mining Licences

In an effort to clean up the mining sector, the federal government of Nigeria has taken the decision to revoke 924 dormant licenses, which include exploration, mining, small-scale mining, and quarrying licences. The announcement was made by the Minister of Solid Minerals Development, Dele Alake, at a press conference. He stated that all concerned parties were provided with ample notice through the official Gazette of the Federal Republic of Nigeria, No. 227, published on 27 December 2023.

During the 30-day notice period, 39 licensees either resumed operations at their sites or provided explanations for their dormant status. Despite this, the government proceeded with the revocation of 924 licences, which encompassed 528 exploration licences, 20 mining leases, 101 quarry licences, and 273 Small Scale Mining Licences (SSML).

Mr Alake emphasized that the revocation process followed due process and fair consideration, and it reflects the commitment of the Federal Government to implement the “Use it or Lose it” policy as outlined in mining guidelines. He also noted that global investors are now free to apply for any affected Cadastral Units on a “first come, first served” basis.

The minister clarified that the revocation is not intended to be punitive, as affected licensees have the opportunity to make restitution by paying fines within 30 days. A fine of N10m applies to revoked Mining Licenses, N7.5m for Small Scale Mining License (SSML), and N5m for Exploration License (EL).

Moving forward, the Federal Government will not tolerate nefarious activities such as license racketeering or obtaining licenses for speculation to offer them to the highest bidder. Mr Alake encouraged investors to be diligent in flagging off their projects as soon as they obtain licenses, highlighting Nigeria as open for business and in need of serious and adventurous investors to create job opportunities for the country’s youth.

This revocation of dormant mining licenses is part of the government’s efforts to streamline the mining sector and ensure that licenses are being used for their intended purpose. By implementing penalties for those who commercialize these opportunities, the government aims to encourage genuine and committed investors.

Dele Alake
Special Assistant on Media
Honourable Minister of Solid Minerals Development
24th April, 2024.