Abuja: The Nigeria Extractive Industries Transparency Initiative (NEITI) has stated that the Federal Government's decision to revoke 1,263 solid minerals operational licences is aimed at sanitising and boosting investment in the sector. The revocation follows the validation of findings from NEITI's annual sector audit report. A statement from the Presidency announced the revocation of licences due to various infractions, including the failure to pay mandatory licensing fees and other statutory financial obligations to the government. The affected licences include 584 exploration licences, 65 mining leases, 144 quarry licences, and 470 small-scale mining leases.
According to News Agency of Nigeria, Dr Orji Ogbonnaya Orji, Executive Secretary of NEITI, described the sanctions as bold and timely, aligning with NEITI's own annual audit findings. Orji recalled that NEITI's 2023 Solid Minerals Industry Audit revealed that 1,619 companies owed the federal government about N680.3 million in unpaid fees and royalties. NEITI's 2021 audit report also flagged similar issues, indicating that 238 companies with 289 valid licences owed about N1.06 billion. The 2020 report showed that over 2,000 companies owed approximately N2.76 billion.
Orji expressed concern over the recurring trend of operators defaulting on their obligations, noting that previous reviews highlighted N654.28 million still outstanding from 233 companies holding 284 licences. 'These figures underline a persistent culture of non-compliance that has undermined revenue collection and sector credibility,' he said. He emphasised that the revocation of defaulting licences sends a strong message that solid mineral titles are legal instruments tied to clear obligations. The sanctions are expected to deter further defaults and open opportunities for credible investors interested in genuine exploration and mining expeditions.
The revocation also aims to address revenue leakages in the system. Unpaid service fees and royalties, which have amounted to several billions of Naira in recent years, represent resources needed for government development priorities, such as infrastructure, education, and healthcare. Enforcing compliance is seen as a way to boost revenue inflows and build transparency and accountability in the sector. In the long run, this move is part of Nigeria's broader agenda of economic diversification, reducing dependence on oil, and positioning solid minerals as a reliable source of sustainable growth.
Orji commended the Ministry of Solid Minerals Development and the Mining Cadastral Office for their decisive action on the issue and stressed the importance of sustaining these efforts. The latest revocation brings the total number of solid minerals titles revoked under the present administration to 3,794. This follows the revocation of 619 licences for non-payment of service fees and 912 others last year for dormancy.