The Nigerian Mining Cadastre Office (MCO) has brought to light that over 2,500 holders of solid mineral titles have neglected to fulfil their annual service fees to the Federal Government. Consequently, this has raised the impending possibility of the revocation of their mining leases.
As per a report acquired by The Guardian, a total of 2,763 mining leases and mineral titles are at risk of being nullified owing to non-payment of fees. The roster of defaulters encompasses 135 mining lease companies, 767 exploration license companies, 1,173 small-scale mining lease companies, and 688 quarry lease companies.
The Cadastre office has issued a stern warning to the defaulters, urging them to settle their outstanding payments by February 10, 2021, to sidestep the revocation of their titles. The report also underscores the necessity for all mineral titleholders with previously revoked titles to clear their outstanding liabilities before any further action is taken.
In a statement, the Director-General of the MCO, Engr Simon Nkom, emphasised the necessity of the move, citing the need to eliminate speculators and ensure the active participation of legitimate businesses in the sector. Nkom pointed out that there are companies holding mineral titles without utilising them or fulfilling their financial obligations to the government, which has detrimental effects on the economy and hinders the achievement of the country’s economic diversification goals.
Furthermore, the MCO has made it clear that the publication of defaulters is in accordance with the Nigerian Minerals and Mining Act (2007), and failure to comply within the specified timeframe may result in legal action being taken against the companies or individuals concerned. The office has also advised any mineral titleholders who have been erroneously included in the list to rectify their records with the relevant authorities.
The measure to revoke inactive mineral titles is part of the government’s efforts to promote responsible and sustainable mining practices in Nigeria. By holding titleholders accountable for their obligations to the state, the aim is to discourage speculation and ensure that the mining sector contributes significantly to the country’s economic growth.
It is crucial for businesses operating in the mining industry to fulfil their financial responsibilities to the government, as this contributes to the overall progress and development of the sector. The revenue generated from mining activities can be instrumental in funding critical infrastructure projects, driving job creation, and supporting the nation’s economic advancement.
As the deadline for payment approaches, affected companies and individuals are strongly urged to take prompt action to settle their outstanding fees and liabilities. Failure to do so may result in the revocation of their mineral titles, in accordance with the provisions of the Nigerian Minerals and Mining Act (2007) and its associated regulations.
It is imperative for the sustainability and growth of the mining sector in Nigeria that proper adherence to financial obligations is upheld by all stakeholders. The government’s commitment to eliminating speculators and ensuring compliance with legal requirements is a positive step towards creating a more robust and thriving mining industry in the country.