By Bassey Udo
The decision by the Federal Government to revoke 1,263 solid minerals operational licenses is a validation of the findings contained in the annual sector audit report, the Nigeria Extractive Industries Transparency Initiative (NEITI) has said.
A statement from the Presidency on Monday disclosed that the licenses were revoked for various infractions, including failure by the licensees to pay the mandatory licensing fees and other statutory financial obligations to the government.
The licenses affected include 584 exploration licenses, 65 mining leases, 144 quarry licenses, and 470 small-scale mining leases.
The latest number brings to about 3,794 the total number of solid minerals titles revoked under the present administration, following about 619 others previously revoked for non-payment of service fees and 912 revoked last year for dormancy.
Reacting to the sanctions by the Presidency on Monday in Abuja, the Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, described the government’s action as bold, timely, and fully consistent with its own annual audit findings.
Orji recalled that NEITI had, in its 2023 Solid Minerals Industry Audit, reported that 1,619 companies were found to owe the Federal Government about ₦680.3 million in unpaid fees and royalties.
The transparency agency had also flagged similar trends in its 2021 audit report, which showed that about 238 companies operating in the sector with 289 valid licenses were owing the government about ₦1.06 billion, while the 2020 edition of the report revealed that about ₦2.76 billion was the total debt owed the government by more than 2,000 companies.
Orji said the earlier reports by NEITI in previous years also followed similar trends.
Expressing concern over the recurring trend of operators defaulting in their obligations to the government, NEITI said earlier reviews had also flagged that about ₦654.28 million was still outstanding as payments from 233 companies holding 284 licenses.
“These figures underline a persistent culture of non-compliance that has undermined revenue collection and sector credibility”, Dr Orji lamented.
He said by revoking the defaulting licenses, the government has sent a strong message to those who may want to indulge in similar infractions that solid mineral titles were not speculative assets to be hoarded, rather legal instruments tied to clear obligations that must be discharged.
Dr Orji added that these sanctions would definitely not only deter further defaults, but would also open up fresh opportunities for credible investors willing to put capital and technology into genuine exploration and mining expeditions in the sector.
He expressed the hope that by releasing the areas tied up by dormant or defaulting operators, the sector would expand access for serious players, stimulate competition, and improve the overall investment climate in the solid minerals sector.
The revocation, the NEITI Executive Secretary said, would also address the problem of revenue leakages in the system.
“Unpaid service fees and royalties, which run into several billions of Naira in recent years, represent resources urgently needed to fund government development priorities, including infrastructure, education, and healthcare.
“Enforcing compliance will boost revenue inflows, while also helping to build transparency and accountability in the sector. In the long run, this strengthens Nigeria’s broader agenda of economic diversification, reducing dependence on oil, and positioning solid minerals as a reliable source of sustainable growth,” he said.
While commending the Ministry of Solid Minerals Development and the Mining Cadastral Office for acting decisively on a problem repeatedly identified in the annual industry audit reports, NEITI emphasised the need for the steps to be sustained.
He said consistent enforcement and transparency were not only essential to restore discipline, accountability, and credibility in Nigeria’s solid minerals sector, but also to position it as a pillar of economic diversification.
Orji renewed NEITI’s call for urgent and deliberate policy to unveil a comprehensive reform programme in the solid minerals industry to attract genuine investors with the required capital, technical experience, investment flow network, capacity and knowledge in the sector.
