Federal Government Takes Swift Action: Revokes 1633 Mining Licences in Nigeria Due to Unpaid Fees

The Ministry of Solid Minerals Development, under the auspices of the Federal Government, has taken decisive action by revoking 1633 mineral titles due to the non-payment of annual fees. Dr. Oladele Alake, the minister overseeing the ministry, made this announcement during a press briefing held in Abuja on Tuesday. This move follows a similar but more extensive revocation of 3,402 mineral titles late last year, signaling the government’s commitment to enforcing compliance with the Nigerian Minerals and Mining Act (NMMA) of 2007.

Dr. Alake emphasized that the NMMA mandates mining operators to remit an annual service fee at a fixed rate, a legal requirement that some firms have neglected. The fees are seemingly modest, starting as low as N1500 for cadastral units not exceeding 200 units. The minister expressed concern over mining companies reaping substantial profits from their operations while failing to fulfill their financial obligations to the government.

“It is indeed very unconscionable for corporate bodies making huge profits from mining to refuse to give the government its due by failing to pay their annual service fee. It is indeed a reasonable conjecture that such a company will even be more unwilling to pay royalties and honor its tax obligations to the government,” remarked Dr. Alake.

He further highlighted the minimal financial burden imposed on mining companies, citing examples such as exploration titleholders paying only N1,500 per cadastral unit not exceeding 200 units. The fees increase for those holding titles covering more extensive areas, ensuring that companies pay in proportion to the size of their mining operations.

In adherence to the stipulations of the NMMA 2007, Dr. Alake revealed that the Mining Cadastre Office (MCO), responsible for overseeing mineral titles in the country, issues a 30-day notice to defaulting parties when a payment default occurs. If the defaulting party does not make the required payment within this warning period, the licence becomes eligible for revocation. The minister emphasized the existence of a platform called EMC+ for obtaining licences, which automatically notifies licensees of their financial obligations.

Dr. Alake disclosed that approximately 2,213 titleholders were granted a 30-day notice to settle their outstanding fees. However, only 580 titleholders responded by making the necessary payments within the stipulated timeframe. As a consequence, the MCO commenced the process of revoking 2,213 titles on October 4, 2023, as a measure to enforce compliance. The revoked titles, encompassing exploration licences, small-scale mining licences, quarry licences, and mining leases, were subsequently published in the Federal Government Gazette on October 10, 2023.

“The mandatory 30 days expired on November 10, 2023. Only 580 titleholders responded by settling their indebtedness. With this development, the MCO recommended the revocation of 1,633 mineral titles,” stated Dr. Alake.

Exercising the powers conferred upon him by the NMMA 2007, Section 5 (a), the minister officially approved the revocation of the 1,633 titles. He cautioned those whose licences have been revoked to promptly vacate mining sites to avoid legal repercussions and potential apprehension by security agencies.

This decisive action by the Ministry of Solid Minerals Development underscores the government’s commitment to enforcing regulatory compliance within the mining sector. The revocation of mineral titles serves as a deterrent to companies that may be tempted to disregard their financial obligations to the government, ensuring a fair and transparent framework for the exploitation of Nigeria’s mineral resources. As the government takes steps to uphold the integrity of the mining industry, it sends a clear message that adherence to legal requirements is non-negotiable for all stakeholders involved.