Nigeria cancels mining licenses

The government of Nigeria has cancelled a number of mining licenses in bid to enforce financial compliance and restructuring in the mining sector.

Minister of Solid Minerals Dele Alake announced the revocation of 1,663 mining licenses over non-payment of annual service fees by the titleholders. The Minister explained that the action was taken following a 30-day notice of payment issued to defaulting titleholders, in accordance with the Nigerian Minerals and Mining Act of 2007.

The annual service fees, considered a crucial component of the regulatory framework, are meant to fund essential services related to mining activities in Nigeria, the most populous African country. Alake explained that the philosophy behind the 2007 Act is to establish a rational system for administering titles transparently, ensuring a seamless transition from reconnaissance to exploration and from exploration to mineral extraction.

Road to sustainable mining

The affected licenses covered a diverse array of minerals and locations across the country. A meticulous review revealed a widespread pattern of non-compliance with the mandatory annual service fees. The government’s move is accompanied by a warning to the previous license holders to leave the relevant cadaster immediately, and security agencies will work with the mines inspectorate to apprehend any defaulter found in the revoked areas.

The government’s restructuring efforts aim not only to enforce compliance but also to encourage a more sustainable and socially responsible approach to mining in the long run. The minister highlighted the need for a governance system that regulates the conduct of participants in the sector, including entry and exit procedures, government obligations, and penalties for non-compliance.

Additionally, the minister hinted at an impending move to review the annual service fee upwardly. The ministry has outlined a roadmap for reinstating licenses, requiring prompt payment of outstanding service fees, adherence to environmental standards, and engagement in community development initiatives.