Nigeria Cancels 1,633 Mining Licenses, Vows To Clean Up Solid Minerals Sector

The federal government has revoked 1,633 mining licenses after the companies failed to pay mandatory annual service fees of N1,500 per cadastral unit. The administration also looks to clean up the solid minerals sector.

Minister of Solid Minerals, Dele Alake, said the licenses were canceled after issuing warnings to 2,213 mining companies, asking them to comply with sections 10, 11 and 12 of the Mining Act.

He pointed out that it is "indeed very unconscionable for corporate bodies making huge profits from the mining" sector and yet refuse to pay the government its due.

"It is indeed a reasonable conjecture that such a company will be willing to pay royalties and honor its tax obligations to the government. The amount the companies are being asked to pay is peanuts compared to their revenue projections," Alake noted, Punch reported.

"In compliance with the law, the Mining Cadastral Office on October 4, 2023, began the process of revoking 2,213 titles. These included 795 Exploration titles, 956 Small Scale Mining Licences, 364 Quarry licenses, and 98 Mining Leases," he added.

He explained that these laws were published in the Federal Government Gazette No. 178, Vol. 110, with the notice of revocation if the annual service fee is not paid.

"The Mining Cadastre Office has recommended the revocation of 1,633 mineral titles as follows: Exploration Licence, 536; Quarry Licence, 279; Small Scale Mining Licence, 787 and Mining Lease, 31," the minister said.

As per the act, the companies will have 30 days to respond to the government's default notice. However, only 580 responded to the notice and paid the annual fees this time.

Last month, Alake revealed the federal government was planning to shift toward solid minerals to boost the country's revenue.

"Our vision is to make solid minerals our pride, a major contributor to Nigeria's Gross Domestic Product," Alake said. "We will diversify from oil, to exploit it for the survival of Nigeria. This is our own contribution to climate change."

He added that the federal government was working on policies to help the mining sector and also attract local and foreign investors.