The Nigerian Mining Cadastre Office (MCO) has announced the revocation of over 2,500 mining leases due to the default in the payment of yearly service fees to the Federal Government. This move comes as a result of the failure of 135 mining lease companies, 767 exploration license companies, 1,173 small-scale mining lease companies, and 688 quarry lease companies to meet their financial obligations.
In accordance with the report released by the Cadastre office, the affected companies and mineral titleholders have been given until February 10, 2021, to settle their outstanding fees. Failure to do so will result in the revocation of their titles. The MCO stated that all mineral titleholders whose titles had been previously revoked must pay their outstanding liabilities prior to the revocation of their titles.
Engr Simon Nkom, the Director-General of the MCO, emphasised that the decision to revoke the titles aims to curb speculation and ensure that the mining sector operates efficiently. He highlighted the importance of companies fulfilling their obligations, as it directly impacts the progress and development of the sector. Nkom stressed that the government’s goals for the mining industry can only be achieved when businesses uphold their responsibility and contribute to the nation’s economic growth.
Furthermore, the Cadastre office cautioned mineral titleholders who are in default, stating that the intention to revoke their titles serves as a necessary step to enforce compliance with the regulations. In compliance with Section 155 of the Nigerian Minerals and Mining Act (2007), the office will take legal action against defaulters to recover outstanding fees if they fail to rectify their defaults within the specified 30-day period.
The MCO’s publication of the names of the defaulters and the impending revocation of titles is a significant move to ensure accountability and regulatory compliance within the mining industry. As companies are required to pay their annual service fees and utilize their titles, the government aims to eradicate dormant mineral titles and prevent the adverse effects of speculators on the sector.
It is crucial for all mineral titleholders to adhere to the stipulated regulations and settle their outstanding fees within the given timeframe to avoid the revocation of their titles. The initiative undertaken by the MCO seeks to uphold the integrity of the mining sector and contribute to the realisation of Nigeria’s economic diversification agenda.
In conclusion, the announcement of the revocation of over 2,500 mining leases by the Nigerian Mining Cadastre Office underscores the importance of compliance and financial responsibility within the mining industry. Companies and mineral titleholders must take heed of the warning and ensure that they fulfill their obligations to the Federal Government to avoid the revocation of their titles. The decision to eliminate speculators and enforce regulatory compliance is a crucial step towards achieving the government’s objectives for the mining sector.