The Nigeria Extractive Industries Transparency Initiative (NEITI) has thrown its weight behind the Federal Government’s decision to revoke 1,263 mineral licences belonging to operators who failed to fulfil their statutory obligations.
In a statement issued on Monday, the agency’s Director of Communications and Stakeholder Management, Obiageli Onuorah, described the action of the Minister of Solid Minerals Development, Dr. Dele Alake, as bold, timely, and fully consistent with NEITI’s audit findings over the years.
According to the statement, the licences revoked include 584 exploration licences, 65 mining leases, 144 quarry licences, and 470 small-scale mining leases.
This latest round of cancellations brings the total mineral titles revoked under the current administration to 3,794.
That figure covers 619 licences previously withdrawn over non-payment of service charges and an additional 912 revoked last year for inactivity.
NEITI explained that its endorsement of the government’s action is anchored in its periodic industry reports, which have consistently highlighted widespread defaults by mining title holders.
Data from its 2023 Solid Minerals Industry Report showed that 1,619 companies owed the Federal Government N680.3 million in unpaid royalties and service fees.
The pattern, NEITI noted, has been persistent.
In 2021 alone, 238 companies holding 289 valid licences accumulated debts of N1.06 billion.
Similarly, its 2020 report documented outstanding payments of N2.76 billion from over 2,000 companies.
Even earlier audits confirmed that 233 companies with 284 mineral titles were indebted to the government to the tune of N654.28 million.
Speaking on the development, NEITI’s Executive Secretary, Dr. Ogbonnaya Orji, said the recurring debt profile revealed a culture of non-compliance that has weakened government revenue streams and eroded investor confidence in Nigeria’s solid minerals sector.
“By revoking the licences, the government is sending a strong message that mineral titles are not speculative assets to be stockpiled and left dormant but legal instruments tied to very clear financial and operational obligations,” Orji stressed.
NEITI further argued that rigorous enforcement of compliance rules will not only strengthen revenue generation but also help rebuild transparency and accountability in the mining industry. The agency emphasised that unpaid fees and royalties running into billions of naira represent much-needed resources that could fund critical national priorities such as infrastructure, education, and healthcare.
“Enforcing compliance will boost revenue inflows while at the same time helping to institutionalise transparency and accountability in the solid minerals sector,” the statement noted.
Dr. Orji also pointed out that penalties like licence revocations would act as deterrents to future defaults, while simultaneously freeing up valuable mining assets for credible investors with the financial capacity and technical know-how to drive meaningful exploration and production.
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