Nigerian Government Takes Action Against Defaulting Mining Companies

In a bid to enforce compliance with financial obligations, the Nigerian government has revoked a total of 1,633 mining titles from companies that have failed to pay their annual service fees.

Minister of Solid Minerals Development, Dele Alake, disclosed that the affected companies had defaulted in the payment of royalties and taxes to the Federal Government, despite the relatively small amount involved. The revocation process commenced on October 4 with the publication of the names of holders of 2,213 mining titles in the Federal Government Gazette. Following the conclusion of a 30-day period, during which only 580 title holders settled their debts, the government proceeded with the revocation of the 1,633 titles, including exploration licenses, small-scale mining licenses, quarry licenses, and mining leases.

Minister Alake stated that the revoked titles will be reallocated to more serious investors, and the previous holders have been cautioned to vacate the relevant cadaster immediately to avoid legal consequences. Security agencies will collaborate with the ministry’s mines inspectorate to apprehend any defaulters found on the revoked areas.

The Minister reiterated the government’s dedication to sanitising the solid minerals sector and positioning it for international competitiveness, in alignment with President Bola Tinubu’s objectives. He urged stakeholders to cooperate in achieving these aims and called on companies that have conducted business in the sector improperly to reform for the benefit of the Nigerian people.

In justifying the government’s action, Minister Alake stressed the reasonable nature of the financial obligations imposed on mining companies. He expressed disappointment at corporate entities making substantial profits from mining activity but failing to remit their dues to the government. He also underscored that the fees imposed on the companies were minimal compared to their revenue projections.

The Minister explained that the governance system established by the Nigerian Minerals and Mining Act 2007 aims to regulate the conduct of participants, outline entry and exit procedures, define government obligations to participants, and delineate penalties for non-compliance. He acknowledged the challenges faced by the Mining Cadastral Office in monitoring title holders’ compliance and warned illegal miners to cease their activities as their “days were numbered”.

In conclusion, the government’s decision to revoke mining titles reflects its commitment to ensuring compliance with financial obligations in the mining sector. By reallocating the titles to more serious investors, the government aims to foster responsible mining practices and maximise the sector’s contribution to national development.

Source: NAN