Nigeria’s Mining Shake-Up: The Latest Buzz
Hey there, have you heard about the latest buzz in Nigeria’s mining industry? The Nigerian government has made a big move by revoking the operating licenses of 1,633 mining title holders for not paying their annual service fees. Dele Alake, the Minister of Solid Minerals Development, spilled the beans at a press conference in Abuja. He talked about the need for a governance system to regulate the sector, ensure compliance, and penalize non-compliance.
According to Mr Alake, the aim of the Nigerian Minerals and Mining Act 2007 is to create a transparent and comprehensive system for administering titles, from exploration to mineral extraction. The minister pointed out that the Mining Cadastral Office (MCO) faces challenges in monitoring title holders’ compliance with basic requirements and service fees.
The companies that failed to pay their annual service fees were called out for their actions. Mr Alake stated that it’s not fair for companies making profits from mining to refuse to pay their due to the government. He highlighted that the amount these companies are being asked to pay is minuscule in comparison to their revenue projections. It’s like a drop in the ocean for them.
The minister provided details on the fees, explaining that the larger the area covered by a mining title, the more the company has to pay. This principle was put in place to prevent companies from holding more area than they require for exploration. He also outlined the legal provisions for revoking mineral titles in cases of default payment.
In compliance with the law, the MCO initiated the process of revoking 2,213 titles, out of which 1,633 titles were recommended for revocation after the 30-day notice period. However, only 580 titleholders settled their dues, leading to the revocation of the remaining titles.
Mr Alake emphasized the government’s commitment to sanitizing the solid minerals sector and encouraged stakeholders to cooperate in achieving this goal. He called on those who have previously engaged in questionable practices to turn over a new leaf.
The move by the government reflects a significant step towards regulating the mining sector and promoting international competitiveness. It’s a reminder of the importance of compliance, fairness, and accountability in the industry.
