FG Cancels 1,263 Mining Licences in Sector-Wide Cleanup

The Federal Government has revoked 1,263 mineral licences across Nigeria in a sweeping move to enforce regulatory compliance and restore order in the solid minerals sector. The announcement was made in Abuja by the Minister of Solid Minerals Development, Dr. Dele Alake, who described the action as part of a broader strategy to eliminate speculative operators and open up the industry to serious investors.

According to the minister, the revoked titles include 584 exploration licences, 65 mining leases, 144 quarry licences, and 470 small-scale mining permits. These licences will be removed from the Electronic Mining Cadastral System managed by the Nigerian Mining Cadastral Office (MCO). The decision followed recommendations from the MCO, which found that the affected companies had failed to meet the mandatory requirement of paying annual service fees.

Dr. Alake emphasized that the revocation was not arbitrary but a necessary step to ensure that only financially capable and committed operators remain active in the sector. He warned against the practice of acquiring licences for speculative purposes, stating that such behaviour undermines the growth and credibility of Nigeria’s mining industry. He added that those no longer interested in mining should voluntarily relinquish their licences rather than hold them idle.

The minister clarified that the revocation does not absolve the defaulting companies of their financial obligations. He revealed that the list of defaulters would be forwarded to the Economic and Financial Crimes Commission for debt recovery and possible prosecution. This, he said, would serve as a deterrent to others and encourage greater diligence in the sector.

With this latest action, the current administration has now cancelled a total of 3,794 mineral titles since taking office. This includes 619 licences revoked last year for non-payment of fees and another 912 terminated due to inactivity.

Dr. Alake noted that the areas covered by the revoked licences would be reopened for fresh applications, creating new opportunities for investment and development. He said the reforms were already yielding positive results, despite resistance from some defaulters and their allies.

Providing further insight into the process, the Director-General of the MCO, Simon Nkom, explained that the agency initially identified 1,957 defaulters and published its intention to revoke their titles in the Federal Government Gazette on June 19, 2025. The publication served as a formal notice and offered a 30-day window for compliance, in accordance with the Minerals and Mining Act of 2007.

Nkom said the delay in finalizing the revocation list was due to the need to verify claims of payment made through the Treasury Single Account platform, Remita. Only those who failed to provide credible evidence of payment were ultimately recommended for revocation.

He reiterated the government’s commitment to cleaning up the mining sector, stressing that expired and inactive licences distort the industry and prevent genuine investors from accessing viable sites. He described the exercise as essential to restoring investor confidence and ensuring that Nigeria’s mineral resources are managed responsibly.

Officials maintain that the revocation of licences is not intended to punish operators but to promote transparency, accountability, and sustainable development. The reforms, they say, are already positioning the solid minerals sector as a key driver of Nigeria’s economic diversification agenda.