3,794 Mineral Licences Revocation Consistent With Policy Discipline – NEITI

The Nigeria Extractive Industries Transparency Initiative (NEITI) has applauded the federal government for taking bold actions to deal with inefficiency in the country’s mineral resources development industry.

NEITI’s statement comes  following Government’s decision to revoke 1,263 mineral licences for failure to pay licensing fees and other statutory financial obligations.

The licences affected include 584 exploration licences, 65 mining leases, 144 quarry licences, and 470 small-scale mining leases. With this move, the total number of mineral titles revoked under the present administration has now risen to 3,794, including 619 revoked for non-payment of service fees and 912 revoked last year for dormancy.

NEITI described the government’s action as bold, timely, and fully consistent with its own audit findings.

NEITI explained that the agency’s 2023 Solid Minerals Industry Report found that 1,619 companies owed the Federal Government N680.3 million in unpaid fees and royalties.

Earlier reports had flagged similar trends: in 2021, 238 companies holding 289 valid licenses owed N1.06 billion, while the 2020 report revealed N2.76 billion owed by more than 2,000 companies. Its earlier reports also follow similar trends.

NEITI expressed concern that the trend of defaults had been a recurring problem: in 2021, 238 companies holding 289 valid licences owed N1.06 billion in service fees, while the 2020 report revealed liabilities of N2.76 billion owed by more than 2,000 companies. NEITI added that its earlier reviews had also flagged N654.28 million outstanding from 233 companies holding 284 licences.

The NEITI executive secretary, Dr Orji Ogbonnaya Orji, remarked, “These figures underline a persistent culture of non-compliance that has undermined revenue collection and sector credibility. By revoking the licences, the government strongly conveys that mineral titles are not speculative assets to be hoarded but legal instruments tied to clear obligations.”

Dr Orji added that these sanctions would deter further defaults and open up fresh opportunities for credible investors willing to put capital and technology into genuine exploration and mining.

He hoped that releasing the areas tied up by dormant or defaulting operators would expand access for serious players, stimulate competition, and improve the overall investment climate in the solid minerals sector.

The revocation also addresses the problem of revenue leakages. Unpaid service fees and royalties, which have run into billions of naira in recent years, represent resources urgently needed to fund government priorities, including infrastructure, education, and healthcare.

Enforcing compliance, he said, would boost revenue inflows, while also helping to build transparency and accountability in the sector. In the long run, adding, “this strengthens Nigeria’s broader economic diversification agenda, reducing dependence on oil and positioning solid minerals as a reliable source of sustainable growth.”