FG Cancels 1,263 Mining Licences Over Non-Compliance

The Federal Government has revoked 1,263 mineral titles belonging to mining companies and operators across the country due to failure to meet the stipulated conditions of their licences. The decision, which comes as part of efforts to sanitize the solid minerals sector, was announced by the Ministry of Solid Minerals Development, marking one of the most sweeping actions in recent years against defaulters in the industry.

According to the ministry, the revoked licences cut across various categories, including exploration, mining, quarry, and small-scale mining permits. Officials explained that the action became necessary following repeated defaults by licence holders who failed to comply with the conditions attached to their permits, such as payment of statutory fees, submission of operational reports, and commencement of work within the designated timelines.

Minister of Solid Minerals Development, Dr. Dele Alake, stated that the revocation exercise is a demonstration of government’s resolve to enforce discipline and ensure that the sector contributes meaningfully to the national economy. He said many operators had acquired licences and left them dormant for speculative purposes, thereby denying serious investors access to opportunities. By canceling these titles, he added, government is opening up space for credible players ready to commit resources to exploration and mining activities.

The decision aligns with the government’s broader strategy to reposition the mining sector as a key driver of Nigeria’s diversification agenda. For decades, the solid minerals sector has been underutilized despite the country’s vast deposits of gold, limestone, iron ore, lithium, and other valuable resources. With oil revenues under pressure and global energy transitions reshaping economies, Nigeria has renewed efforts to harness its mineral wealth.

Industry experts have welcomed the move, describing it as a bold step to address one of the major bottlenecks in the sector. Dormant licences, they argued, had long created an artificial scarcity of mining titles while discouraging investors who are genuinely interested in exploration and production. By enforcing compliance, government is sending a strong signal that the era of lax oversight is over.

The revocation also ties into President Bola Tinubu’s directive for greater accountability and transparency in natural resource management. Government sources indicated that the action will pave the way for a fresh round of licence allocations, this time with stricter monitoring mechanisms. Technology-driven platforms, including digital cadastre systems, are expected to be deployed to ensure that new licence holders are monitored effectively and held accountable for their obligations.

While the measure has drawn praise, concerns remain about the fate of workers in companies whose licences were revoked. Stakeholders have urged the government to manage the transition carefully to avoid job losses and disruptions in host communities. They also called for clarity on how revoked assets will be reallocated, emphasizing the need for transparency to prevent political interference or favoritism in the redistribution process.

In recent years, insecurity in mining zones, illegal mining, and revenue leakages have plagued the sector. Officials believe that by revoking dormant titles, government can better police illegal operators who often take advantage of abandoned sites. This, they argue, will strengthen efforts to formalize artisanal and small-scale mining activities, which employ thousands of Nigerians but remain largely unregulated.

Dr. Alake reassured Nigerians that the ministry will continue to engage stakeholders and ensure that genuine investors find an enabling environment. He noted that the government is working on fiscal incentives, infrastructure support, and security frameworks to make mining more attractive. The minister also hinted at increased collaboration with state governments and local communities to resolve conflicts and ensure shared benefits from mineral exploitation.

The revocation of 1,263 mineral licences is thus seen as both a corrective and preventive measure, designed to cleanse the system of inefficiency and build a foundation for sustainable growth. For Nigeria, the action underscores the urgency of diversifying the economy and unlocking the full potential of its natural resources.