The Nigeria Extractive Industries Transparency Initiative (NEITI) has thrown its weight behind the Federal Government’s decision to revoke 1,263 mineral licenses for failure to pay licensing fees and other statutory financial obligations.
The licenses affected include 584 exploration licenses, 65 mining leases, 144 quarry licenses, and 470 small-scale mining leases. With this move, the total number of mineral titles revoked under the present administration has now risen to 3,794, including 619 revoked for non-payment of service fees and 912 revoked last year for dormancy.
NEITI described the government’s action as bold, timely, and fully consistent with its own audit findings.
A statement from NEITI House explained that the Agency’s 2023 Solid Minerals Industry Report found that 1,619 companies owed the Federal Government ₦680.3 million in unpaid fees and royalties. Earlier reports had flagged similar trends: in 2021, 238 companies holding 289 valid licenses owed ₦1.06 billion, while the 2020 report revealed ₦2.76 billion owed by more than 2,000 companies. Our earlier reports also follow similar trends”
NEITI expressed concern that the trend of defaults has been a recurring problem: in 2021, 238 companies holding 289 valid licenses owed ₦1.06 billion in service fees, while the 2020 report revealed liabilities of ₦2.76 billion owed by more than 2,000 companies. NEITI added that its earlier reviews had also flagged ₦654.28 million outstanding from 233 companies holding 284 licenses.
The NEITI Executive Secretary, Dr Orji Ogbonnaya Orji remarked “These figures underline a persistent culture of non-compliance that has undermined revenue collection and sector credibility.
By revoking the licenses, government is sending a strong message that mineral titles are not speculative assets to be hoarded but legal instruments tied to clear obligations.
Dr Orji added that these sanctions will not only deter further defaults but will also open up fresh opportunities for credible investors willing to put capital and technology into genuine exploration and mining.
He expressed the hope that by releasing the areas tied up by dormant or defaulting operators will expand access for serious players, stimulate competition, and improve the overall investment climate in the solid minerals sector.
The revocation also addresses the problem of revenue leakages. Unpaid service fees and royalties, which have run into billions of naira in recent years, represent resources urgently needed to fund government priorities, including infrastructure, education, and healthcare.
Enforcing compliance will boost revenue inflows, while also helping to build transparency and accountability in the sector. In the long run, this strengthens Nigeria’s broader agenda of economic diversification, reducing dependence on oil, and positioning solid minerals as a reliable source of sustainable growth.
“NEITI commended the Ministry of Solid Minerals Development and the Mining Cadastral Office for acting decisively on a problem repeatedly identified in its industry reports. The agency emphasised that this step must be sustained, as consistent enforcement and transparency are essential to restore discipline, accountability, and credibility in Nigeria’s solid minerals sector, and to position it as a pillar of economic diversification.”
NEITI renewed its call for urgent deliberate policy to unveil a comprehensive reform program in the solid minerals industry to attract genuine investors with the required capital, investment flow network, capacity and knowledge in the sector.
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