The Nigeria Extractive Industries Transparency Initiative (NEITI) has commended the federal government for its decisive measures aimed at tackling inefficiencies within the nation’s mineral resources sector.
This endorsement follows the government’s recent move to annul 1,263 mineral licences due to non-payment of licensing fees and other mandatory financial commitments.
The revoked licences encompass 584 exploration permits, 65 mining leases, 144 quarry licences, and 470 small-scale mining permits. This action has increased the total number of mineral titles withdrawn under the current administration to 3,794, which includes 619 licences revoked for unpaid service fees and 912 licences cancelled last year due to inactivity.
NEITI praised the government’s initiative as both courageous and timely, aligning closely with findings from its own audits.
According to NEITI’s 2023 Solid Minerals Industry Report, 1,619 companies owe the Federal Government a total of N680.3 million in outstanding fees and royalties.
Previous reports have highlighted similar issues: in 2021, 238 companies holding 289 valid licences were indebted to the tune of N1.06 billion, while the 2020 report revealed arrears amounting to N2.76 billion from over 2,000 companies. Earlier assessments also identified N654.28 million owed by 233 companies with 284 licences.
NEITI expressed concern over the persistent nature of these payment defaults, emphasizing that such patterns have consistently undermined revenue collection and the sector’s integrity.
Dr. Orji Ogbonnaya Orji, NEITI’s Executive Secretary, stated, “These statistics highlight a deep-rooted culture of non-compliance that erodes both government revenue and the credibility of the mining sector. By revoking these licences, the government sends a clear message that mineral titles are not speculative assets to be hoarded but are legal rights accompanied by specific responsibilities.”
He further noted that these enforcement actions would discourage future delinquencies and create new opportunities for genuine investors ready to commit capital and advanced technology to authentic exploration and mining activities.
Dr. Orji expressed optimism that freeing up areas previously held by inactive or defaulting operators would broaden access for serious stakeholders, foster healthy competition, and enhance the overall investment environment within the solid minerals industry.
The revocation also tackles the issue of revenue leakage. The unpaid fees and royalties, which have accumulated to billions of naira over recent years, represent critical funds needed to support government priorities such as infrastructure development, education, and healthcare.
He emphasized that enforcing compliance will not only increase government revenue but also promote transparency and accountability in the sector. In the long term, Dr. Orji added, “this approach supports Nigeria’s wider economic diversification goals by reducing reliance on oil and positioning solid minerals as a dependable engine for sustainable growth.”
