In a significant move aimed at revitalizing the mining sector, the Federal Government has revoked a total of 924 dormant licenses covering exploration, mining, small-scale mining, and quarrying activities. The announcement came during a press conference on Wednesday, led by the Minister of Solid Minerals Development, Dr. Dele Alake.
Dr. Alake underscored that the decision was made in accordance with constitutional provisions and after providing adequate notice to concerned parties through the official Gazette of the Federal Republic of Nigeria, No. 227, issued on December 27, 2023. He emphasized that license holders were given a 30-day window to rectify their dormant status, with 39 licensees either resuming operations or presenting valid reasons for their inactivity.
The revocation affects a range of licenses, including 528 exploration licenses, 20 mining leases, 101 quarry licenses, and 273 Small Scale Mining Licenses (SSML). Dr. Alake stressed that the action followed due process and aligns with the government’s commitment to the “Use it or Lose it” policy as outlined in mining guidelines.
With the revocation clearing the path for new investors, Dr. Alake stated that interested parties could now apply for the affected Cadastral Units on a “first come, first served” basis. He highlighted the government’s intention to sanitize the licensing system and penalize those who have exploited opportunities for personal gain.
However, Dr. Alake clarified that the revocation was not solely punitive. Affected license holders have been given an opportunity to make restitution by paying fines within 30 days. The fines vary according to the type of license revoked, with a penalty of N10 million for Mining Licenses, N7.5 million for Small Scale Mining Licenses (SSML), and N5 million for Exploration Licenses (EL).
In a stern warning to potential offenders, the Minister emphasized that the government would no longer tolerate activities such as license racketeering or speculative acquisition of licenses for financial gain. He urged investors to promptly commence operations upon obtaining licenses, affirming Nigeria’s commitment to attracting serious investors who can contribute to job creation.
The decisive action by the Federal Government signals a renewed effort to reinvigorate the mining sector, enhance transparency, and promote responsible resource exploitation for sustainable economic development.
