Nigerian Government Revokes1633 Mining Licenses.
The Nigerian government has revoked one thousand six hundred, and thirty-three mining licenses due to default in payment of required service fees by operators.
Minister of Solid Minerals Development, Dr. Oladele Alake who made this known at a press conference in Abuja, the nation’s Capital, said the revocation became necessary after expiration of a thirty-day notice to defaulters, as stipulated by sections 11 and 12 of the Nigerian Mineral Mining Act, NMMA, 2007.
Alake said, “In compliance with the law, the Mining Cadastral Office (MCO) on October 4, 2023 began the process of revoking 2,213 titles. These included 795 Exploration titles, 956 Small Scale Mining Licenses, 364 Quarry licenses, and 98 Mining Leases. These were published in the Federal Government Gazette Number 178, Volume 110 of October 10, 2023 with the notice of revocation for defaulting in the payment of Annual Service Fee.”
“The mandatory 30 days expired on November 10, 2023. Only 580 title holders responded by settling their indebtedness. With this development, the MCO recommended the revocation of 1, 633 mineral titles as follows: Exploration License, 536; Quarry License, 279; Small Scale Mining License, 787 and Mining Lease, 31”
Dr. Alake further said, “In line with the powers conferred on me by the Nigerian Minerals and Mining Act 2007, Section 5 (a), I have approved the revocation of the 1,633 titles. I hereby warn the previous holders of these titles to leave the relevant cadaster with immediate effect as security agencies shall work with the Mines Inspectorate of the Ministry to apprehend any defaulter found on any of the areas where titles have been revoked.”
Annual Service Fee
The Minister of Solid Minerals Development said, “It is 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 of a ‘meager’ one thousand five hundred Naira only.”
Dr. Alake also said efforts are on to sanction other operators defaulting in payment of royalties and taxes amongst others, emphasising that revocation of operators licenses shortchanging government is an on-going process which he said will create space for serious prospective investors to come on stream.
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 honour its tax obligations to the government.”
The amount the companies are being asked to pay is peanut compared to their own revenue projections. For example, the holder of an exploration title pays only N1,500 per cadastral unit, not exceeding 200 units.
Those holding titles covering more than 200 units pay N2,000 per unit, In short, the larger the area your title covers, the more you pay. This principle was applied to ensure that applicants don’t hold more than they require to explore. With a cadastral unit captured as a square of 500 metres by 500 metres, any law-abiding titleholder should not hesitate to perform its obligations. The Minister said.
On Illegal Mining, Dr. Alake read the riot act to culprits, asserting that their days are numbered. He vowed that the government would deal ruthlessly with those who refused to turn a new leaf, restating the commitment of President Bola Tinubu in sanitising the mining sector.
Insecurity
The Minister said plans for the establishment of Mines Police are underway, revealing that the military will conduct initial clearance operations to pave the way for the deployment of the Mines Police.
Dr. Alake appealed to all stakeholders for their co-operation in achieving these patriotic objectives and enjoined those who have done business in this sector the wrong way to turn a new leaf.
Shakirat Sadiq
