The Nigeria Extractive Industries Transparency Initiative (NEITI) has thrown its weight behind the Federal Government’s decision to revoke 1,263 mineral licenses belonging to companies that defaulted on statutory fees and royalties.
In a statement issued Monday, NEITI described the action as “bold, timely, and consistent” with its own audit findings. The revoked licenses include 584 exploration permits, 65 mining leases, 144 quarry licenses, and 470 small-scale mining leases. Altogether, 3,794 mineral titles have now been cancelled under the current administration.
The agency noted that its 2023 Solid Minerals Industry Report identified 1,619 companies owing the government ₦680.3 million in unpaid fees and royalties. The trend, it added, reflects long-standing non-compliance in the sector. In 2021, for example, 238 companies with 289 valid licenses owed ₦1.06 billion, while in 2020 more than 2,000 operators were in arrears, with debts totaling ₦2.76 billion. Earlier audits also flagged ₦654.28 million outstanding from 233 companies.
“These figures highlight a persistent culture of non-compliance that undermines revenue generation and erodes the credibility of the solid minerals sector,” said NEITI’s Executive Secretary, Orji Ogbonnaya Orji. “Revoking these licenses sends a clear message that mineral titles are not speculative assets, but legal instruments with defined obligations.”
Read Also: Missouri GOP Map Boosts Chances For Extra House Seat
According to Orji, the sanctions are designed to deter future defaults and open the door for credible investors with adequate capital and technology to operate responsibly. Releasing dormant licenses, he argued, will boost competition, improve the investment climate, and enhance government revenues.
Beyond financial gains, NEITI stressed that stronger enforcement will curb revenue leakages that have deprived critical sectors like infrastructure, education, and healthcare of much-needed funding. It also pointed out that transparent regulation is essential to restoring investor confidence in the extractive sector and aligns with Nigeria’s broader goal of diversifying its economy away from oil dependence.
The agency praised the Ministry of Solid Minerals Development and the Mining Cadastral Office for taking decisive action on concerns repeatedly flagged in its reports, but urged the government to go further by developing a comprehensive reform strategy to ensure long-term growth and accountability in the industry.