Nigeria Takes Strong Stance Against Illegal Mining Activities, Invalidates 924 Mineral Licenses
The Nigerian government has taken significant steps in addressing the issue of illegal mining by announcing the revocation of 924 mineral licenses. Dr. Oladele Alake, the Minister for Solid Minerals Development, disclosed this development at a media briefing in Abuja. The decision to revoke these licenses comes as a response to concerns about rampant mineral license racketeering and dormancy, which have been detrimental to the industry and have tarnished Nigeria’s reputation.
The licenses that were revoked consisted of 528 exploration licenses, 20 mining leases, 101 quarry licenses, and 273 small-scale mining licenses. Minister Alake also announced a new policy requiring restitution within 30 days in order for the licenses to be reinstated, along with fines imposed accordingly: N7.5 million for small-scale mining licenses, N5 million for exploration licenses, and N10 million for mining licenses, payable to the Federal Government.
During the announcement, Alake condemned those involved in license racketeering, emphasizing the negative impact these practices have on the industry and the economy. He expressed disapproval of the speculation and selling of licenses to the highest bidder, which distorts the market and hinders genuine investors, while also damaging Nigeria’s credibility.
The Minister reiterated warnings issued in November of the previous year when 1,663 licenses were revoked due to a failure to pay statutory charges. He emphasized the adverse consequences of license racketeering, including hindrance to legitimate investors, erosion of foreign direct investment, and distortion of market dynamics.
The government’s decision to revoke dormant licenses aims to restore integrity to the licensing system and level the playing field for investors. Adequate notice was given to affected parties through official gazettes, and out of the 963 licenses notified of potential revocation, only 39 either resumed operations or provided valid justifications for their dormancy. As a result, 924 licenses were revoked, sending a clear message that the government is committed to enforcing the “Use it or Lose it” policy and penalising those who exploit loopholes in the system.
In light of the revocations, investors are now encouraged to apply for the affected cadastral units on a “First Come, First Served” basis. This signals a shift towards transparency and accountability in the licensing process. Minister Alake stressed the importance of prompt project commencement upon obtaining licenses, affirming Nigeria’s commitment to attracting serious and responsible investors.
The actions taken by the Federal Government against illegal mining and license racketeering underscore its dedication to promoting transparency, accountability, and sustainable development in the mining sector. By revoking dormant licenses and imposing fines, the government aims to deter illicit practices and create a conducive environment for legitimate investment. Nigeria remains open for business, welcoming investors who are willing to contribute to the country’s economic growth and empower its youth.
