The Nigerian Ministry of Solid Minerals Development has undertaken a significant clean-up of the mining sector, revoking 1,263 mineral licenses for non-payment of annual service fees. This action, announced by Minister Dele Alake, targets speculative and inactive license holders who obstruct genuine investors and hinder the sector’s growth. The revoked licenses comprise 584 exploration licenses, 65 mining leases, 144 quarry licenses, and 470 small-scale mining leases, and their removal from the Electronic Mining Cadastral System portal aims to free up resources and opportunities for serious investors. This latest wave of revocations follows previous actions by the current administration, bringing the total number of revoked licenses to 3,794, including those revoked for dormancy. The Ministry’s decisive approach underscores its commitment to fostering a transparent and efficient mining ecosystem.
The revocation initiative is designed to address the problem of license hoarding, a practice where individuals or companies acquire licenses without the intention of actively engaging in mining operations. These “speculators” often hold onto licenses in the hope of selling them at a profit to genuine investors, creating an artificial scarcity and driving up the cost of entry into the market. Minister Alake emphasized that the era of such speculative practices is over and that the government is determined to create a level playing field for all investors. The annual service fee requirement is a straightforward mechanism for identifying serious investors and weeding out those who are simply seeking to profit from speculation. The revocation process emphasizes the Ministry’s commitment to enforcing regulations and ensuring that licenses are held by those genuinely committed to developing the mining sector.
The Ministry’s action sends a clear message that owning a mining license entails responsibilities, including the timely payment of annual fees. The move is not merely about reclaiming dormant licenses; it’s also about holding defaulters accountable. Minister Alake stressed that the revocation doesn’t absolve licensees of their financial obligations. The list of defaulters will be forwarded to the Economic & Financial Crimes Commission (EFCC) for further action, ensuring that outstanding fees are collected and that those who have flouted regulations face legal consequences. This firm stance underscores the government’s determination to deter speculative behavior and promote responsible investment in the mining sector.
The process leading to the revocation involved a period of notification and reconciliation. Initially, 1,957 defaulters were identified, and the intention to revoke their licenses was published in the Federal Government Gazette. A 30-day grace period was granted for licensees to rectify their status and comply with the Minerals and Mining Act 2007. The Ministry, through the Mining Cadastral Office (MCO), also addressed complaints from licensees who claimed to have made payments through the Remita platform. This thorough and transparent process demonstrates the government’s commitment to due process and fairness while upholding the law.
The revocation initiative is part of a broader effort by the Tinubu administration to sanitize the mining sector and attract legitimate investors. The Director-General of the MCO, Simon Nkom, has indicated that this is an ongoing exercise targeting expired, speculative, and inactive titles. The objective is to create a more transparent and efficient mining sector, free from the constraints posed by speculators and illegal activities. This cleanup operation is expected to enhance the sector’s attractiveness to foreign investment and contribute to the overall economic growth of the nation.
This decisive action by the Ministry of Solid Minerals Development signals a significant shift in the management of Nigeria’s mining resources. By prioritizing active and committed investors, the government is laying the foundation for a more productive and sustainable mining industry. The revocation of these licenses, coupled with the pursuit of outstanding debts and the commitment to ongoing reforms, sends a strong message that the government is serious about maximizing the potential of the mining sector and ensuring that it benefits the Nigerian economy as a whole. The initiative is expected to boost investor confidence, encourage responsible mining practices, and ultimately contribute to the country’s economic diversification efforts.
