Revocation of Over 3,400 Mining Licences Within a Year by FG
The UK government has adopted a strict position on unused mining licenses, revoking more than 3,400 titles in the past year and pledging to take further action in the coming year. This decision, in accordance with the principle of “use it or lose it,” aims to guarantee that mining rights are actively utilized and not left dormant. Additionally, the revocation extends to license holders who fail to pay mandatory annual service fees, demonstrating the government’s determination to enforce compliance with mining regulations.
These developments were disclosed by Obadiah Nkom, the Director-General of the Nigeria Mining Cadastre Office, during a press briefing at the State House in Abuja. Nkom emphasized the significance of the “use it or lose it” principle in the allocation of mining licenses in Nigeria, clarifying that the agency follows a “first come first served” approach. Furthermore, Nkom explained that the revocation process is not arbitrary, as license holders receive a notice of default and a 30-day window to address any issues before the title is revoked.
In addition to the revocation of inactive mining titles, the Nigeria Mining Cadastre Office has also prioritized revenue generation. Nkom revealed that the agency had generated N14.59 billion in revenue from mining licenses between 2018 and 2022. However, there was a decline in revenue from 2021 to 2022, attributed to changes in the agency’s internal operating system. Nonetheless, the agency remains committed to enhancing revenue generation and contributing to the economic development of the country.
With the renewal of his appointment for another four years, Nkom outlined the strategic considerations and conditions for the issuance of coal mining licenses in Nigeria. He emphasized the agency’s responsibility to ensure the sustainable management of Nigeria’s mineral wealth and the maximization of its economic value. Furthermore, revenue generation through the issuance of licenses is a key focus, as the agency plays a crucial role in contributing to the economic growth and job creation in the country.
The transparency of the mining permit application process has led to an increase in the number of applications received by the Cadastre. Nkom highlighted the positive impact of the agency’s transparent policies, attracting both national and foreign investors. Furthermore, the establishment of zonal offices has made the licensing process more accessible and aims to reduce illegal or informal mining activities. Collaborative efforts with state governments have also facilitated informed recommendations to the Minister of Mines and Steel Development on mining-related matters.
Given the emergence of coal-to-power projects, the agency is strategically examining the coal sector to increase energy alternatives for citizens. This aligns with the broader goal of diversifying the country’s energy sources and providing sustainable solutions for the future. The Nigeria Mining Cadastre Office is positioned to play a crucial role in shaping the country’s mining sector and contributing to the overall development of the nation.
In conclusion, the revocation of over 3,400 mining licenses within a year reflects the government’s dedication to enforcing compliance with mining regulations and ensuring that mineral rights are actively utilized. The agency’s commitment to revenue generation, transparency in the licensing process, and strategic focus on the coal sector underscore its pivotal role in shaping the future of the mining industry in Nigeria.
