The Nigeria Extractive Industries Transparency Initiative (NEITI) has expressed support for the Federal Government’s decision to revoke 1,263 mineral licenses due to non-payment of statutory fees and royalties. According to NEITI, this move is “bold, timely, and consistent” with its own findings, which have consistently highlighted a culture of non-compliance among mineral title holders.
The revoked licenses include 584 exploration licenses, 65 mining leases, 144 quarry licenses, and 470 small-scale mining leases. This brings the total number of revoked mineral titles under the current administration to 3,794, including 619 licenses cancelled for non-payment of service fees and 912 revoked in the previous year due to inactivity.
NEITI’s 2023 Solid Minerals Industry Report revealed that 1,619 companies owe the government N680.3 million in unpaid fees and royalties. Similar patterns of non-compliance have been identified in previous reports, with 238 companies owing N1.06 billion in 2021 and over 2,000 companies owing a combined N2.76 billion in 2020.
NEITI’s Executive Secretary, Orjin Ogbonnaya Orji, emphasized that the revocation of these licenses sends a clear message that mineral titles are not speculative assets, but legal instruments that come with defined obligations. The move is expected to discourage future defaults and pave the way for serious investors to engage in responsible exploration and mining.
By releasing these licenses from dormant or non-compliant operators, the government aims to open access to genuine investors, increase competition, and enhance the overall investment climate. This, in turn, is expected to improve revenue collection and address the long-standing issue of revenue leakages in the solid minerals sector.
The enforcement of compliance is also seen as a key element in promoting transparency and accountability in the extractive sector, which is critical for rebuilding trust and achieving Nigeria’s goal of economic diversification. The Ministry of Solid Minerals Development and the Mining Cadastral Office have been praised for their decisive action on issues repeatedly raised by NEITI in its audits. However, the agency has called for the urgent development of a comprehensive reform strategy for the solid minerals industry to ensure sustained growth and development.