Revocation of Dormant Mining Licences by Federal Government

In an effort to reform the mining sector, the federal government has made the decision to revoke 924 inactive licenses across various mining activities, including exploration, mining, small-scale mining, and quarrying licenses. This follows the previous revocation of 1,663 licenses six months ago.

The revoked licenses comprise of 528 exploration licenses, 20 mining licenses, 101 quarry licenses, and 273 Small Scale Mining Licenses (SSML). The announcement was made by the Minister of Solid Minerals Development, Dr. Dele Alake, during a press briefing in Abuja. It was emphasized that proper notice was given to all concerned parties through the official Gazette of the Federal Republic of Nigeria, No. 227, published on December 27, 2023.

The decision to revoke these licenses came after the mining Cadastral office had previously revoked 1,663 licenses due to a failure to pay statutory charges, fees, and dues to the government. The Minister warned licensees who had not resumed work on their mining projects to do so.

Dr. Alake explained that the revocation is not meant to be punitive and the affected licensees have an opportunity to make restitution by paying fines within 30 days to qualify for consideration. The fines are set at ₦10 million for revoked Mining Licenses, ₦7.5 million for Small Scale Mining Licenses (SSML), and ₦5 million for Exploration Licenses (EL).

The Minister stated that the revocation process followed due process and fair consideration, underscoring the commitment of the Federal Government to implement the standard policy of “Use it or Lose it” as enshrined in mining guidelines. Furthermore, investors across the globe are now free to apply for any of the affected Cadastral Units on a “first come, first served” basis.

This decision aims to sanitize the licensing system by penalizing those who have exploited the opportunities in the mining sector. It also seeks to prevent the negative consequences of a black market for mineral licences, which has led to a loss of foreign direct investment and given the country a negative image abroad.

The Minister emphasized that it is an opportunity for affected licensees to make restitution, imposing fines for different categories of revoked licenses, including those that were revoked six months ago for default in payment of annual service fees.

This move by the government demonstrates its commitment to ensuring that the mining sector is free from fraudulent activities and is open for legitimate investment opportunities. Revoking dormant licenses and allowing new investors to apply for them is a step towards promoting transparency and integrity in the sector.

In conclusion, it is crucial for the mining sector to attract genuine and serious investors who are willing to contribute to the development of Nigeria’s mineral resources. By enforcing the policy of “Use it or Lose it,” the government is sending a strong message that the exploitation of the mining sector for personal gains will not be tolerated. This action will pave the way for a more robust and accountable mining industry in Nigeria.