The Federal Government has intensified its crackdown on inactive and speculative mining licences as part of a broader plan to sanitise Nigeria’s solid minerals sector, with officials confirming that 4,709 licences have been revoked.
The Director-General of the Mining Cadastre Office (MCO), Obadiah Nkom, disclosed this during a live discussion on X (formerly Twitter) titled “A deep dive into the Mining Cadastre Office: Driving transparency and order in Nigeria’s solid minerals sector.”
He explained that the move was not punitive but a deliberate strategy to restore order, protect investors, and eliminate fraud in the system.
According to Nkom, the cancelled licences included:
1,400 expired titles that had not been renewed,
2,338 refused applications that failed to meet legal and technical requirements, and
971 notifications of grant where applicants failed to make payment.
“These licences were revoked by the Minister of Solid Minerals Development, Dr Dele Alake, as part of a sector-wide clean-up exercise.
The objective is simple: to ensure that only genuine investors with financial and technical capacity can participate in Nigeria’s mining industry,” Nkom said.
The DG stressed that the exercise has already had a positive impact, particularly in improving investor confidence.
“It has sanitised our sector, and investors now know that if they are not going to be involved in exploration and value addition, there will be consequences.
We follow the law strictly, and that is why we have a 100 per cent success rate in court litigations,” he added.
Nkom noted that the reforms are discouraging speculation, where individuals hoard licences without adding value, thereby blocking credible investors.
Beyond licence revocations, the MCO has raised alarm over the activities of fraudsters impersonating staff or agents of the agency.
Nkom revealed that some impostors collect money and documents illegally from unsuspecting investors, tarnishing the image of the sector.
To curb this, the MCO has lodged complaints with the Department of State Services (DSS) and the Economic and Financial Crimes Commission (EFCC) to track and prosecute offenders.
“We are going to bite, and bite hard,” Nkom warned.
In addition, the MCO has integrated with the Corporate Affairs Commission (CAC) in real time to verify applicants’ legitimacy.
This ensures that only duly registered companies can apply for mineral titles.
Applicants must also present bank statements and letters to demonstrate financial capacity before approvals are granted.
Nkom explained that holding a licence does not give companies the right to mine minerals outside what was specifically granted.
“Mining beyond your licensed mineral automatically renders you an illegal miner.
But the law allows you to apply to add newly discovered minerals to your licence within weeks. There is no excuse for illegality,” he said.
Nigeria is home to more than 44 mineral resources across 500 locations, including gold, lithium, barite, limestone, gemstones, coal, and bitumen.
Yet, the mining sector contributes less than 1 per cent to the nation’s Gross Domestic Product (GDP), far below its potential.
Experts say the challenges include weak regulation, illegal mining, speculators hoarding licences, and poor infrastructure.
The government hopes that the current reforms will address these bottlenecks and create an environment conducive to serious investment.
Since assuming office in 2023, Minister of Solid Minerals Development, Dr Dele Alake, has prioritised sector reform.
In 2024, he revoked 924 licences for non-payment of statutory charges.
He also warned operators against licence racketeering, which he described as one of the biggest obstacles to sectoral growth.
Last month, Alake hinted at fresh revocations as part of an ongoing review.
The latest move to cancel over 4,700 licences underscores the government’s resolve to reposition mining as a key driver of Nigeria’s economic diversification.
Despite the revocations, the DG revealed that the number of mining companies operating in Nigeria is increasing, with both foreign and local players showing stronger interest.
Small-scale miners are also beginning to organise themselves into cooperatives, further formalising the industry.
“Mining is no longer just breaking stones; it is now big business.
Government reforms are attracting global attention and we are determined to sustain this momentum,” Nkom affirmed.
Analysts believe the reforms, if sustained, could unlock billions of dollars in revenue for Nigeria, create jobs, and reduce the country’s dependence on oil.
However, they caution that enforcement must remain consistent and transparent to build long-term credibility.
The Mining Cadastre Office, established under the Nigerian Minerals and Mining Act of 2007, remains the sole agency responsible for mineral titles.
By strengthening its processes and cracking down on malpractice, the government hopes to transform solid minerals into a key pillar of Nigeria’s economy under the Tinubu administration’s diversification agenda.
