The Federal Government of Nigeria has recently taken a decisive step towards the cleanup of the mining sector by revoking 924 dormant mining licenses. This action follows the revocation of 1,663 titles six months earlier, indicating a concerted effort to purify the industry.
The revoked licenses comprise 528 exploration licenses, 20 mining licenses, 101 quarry licenses, and 273 small-scale mining licenses (SSMLs). Dr. Dele Alake, Minister of Solid Minerals Development, formally announced the revocation at a press briefing in Abuja, citing constitutional provisions and the publication of official gazette No. 227 on December 27, 2023, as the legal basis for the action.
In order to provide the affected parties with an opportunity to rectify the situation, the Minister has stipulated a 30-day window for licensees to pay fines and qualify for consideration. The fines have been set at N10 million for revoked Mining Licenses, N7.5 million for small-scale mining licenses (SSMLs), and N5 million for exploration licenses (ELs).
Dr. Alake emphasized that the revocation was carried out in accordance with due process and fair consideration, aligning with the government’s commitment to implementing the “Use it or Lose it” policy as outlined in mining guidelines.
In a related development, the Lagos Chamber of Commerce and Industry (LCCI) has expressed concerns over the underperformance of the solid mineral sector. According to the National Bureau of Statistics (NBS), the mining and quarrying sector contributed just 4.47% to the Gross Domestic Product (GDP) in the fourth quarter of 2023, a decrease from the previous quarters.
Dr. Chinyere Almona, Director-General of LCCI, highlighted various obstacles hindering the growth of the mining sector, including infrastructure challenges, regulatory inconsistencies, limited access to financing, and security concerns. She emphasized the need for the government to review its strategy to attract mineral exploration investments and stimulate mining project development in line with sustainability principles.
The LCCI stressed that the mining sector, despite its immense potential, has not been a significant driver of economic growth and has received limited investment, contributing less than 0.5% to the GDP.
In conclusion, the decision to revoke dormant mining licenses and the concerns raised by the LCCI underscore the importance of revitalizing the mining sector in Nigeria. It is imperative for the government to address the challenges hindering the sector’s growth and create an enabling environment for sustainable mining activities.