The Nigeria Extractive Industries Transparency Initiative (NEITI) has come out strongly in support of the Federal Government’s recent decision to revoke 1,263 mineral licenses from operators who failed to comply with statutory obligations. NEITI praised the action as bold, timely, and consistent with its own recommendations for improving accountability and transparency in Nigeria’s solid minerals sector.
The revoked licenses include 584 exploration titles, 65 mining leases, 144 quarry licenses, and 470 small-scale mining leases. This latest enforcement brings the number of canceled licenses under the present administration to nearly 3,800, signaling the government’s commitment to cleaning up the sector.
NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, emphasized that the revocation addresses a long-standing culture of non-compliance, where companies consistently defaulted on the payment of statutory fees and royalties. The agency’s 2023 Solid Minerals Industry Report revealed that over 1,600 companies owed over ₦680 million in unpaid fees, with similar patterns found in previous years.
Dr. Orji noted that the move will not only stem revenue leakages for the government but also free up mineral-rich areas controlled by dormant or speculative titleholders. This will pave the way for new, credible investors equipped with capital and technology to responsibly develop the sector.
NEITI further commended the Ministry of Solid Minerals Development and the Mining Cadastral Office for their decisive actions and called for a comprehensive reforms program. This program aims to overhaul the licensing framework, strengthen monitoring and compliance systems, and boost investor confidence to help solid minerals become a key driver of Nigeria’s economic diversification.
As Nigeria strives to reduce its dependency on oil, enforcing compliance in the mining sector through actions like these is vital for sustainable growth and improved governance.
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