Nigeria’s solid minerals sector has entered another phase of reform as the Federal Government moves to cancel more than 1,200 dormant and defaulting mining licences, in a decisive attempt to sanitise the industry and attract credible investors.
The Ministry of Solid Minerals Development, through the Mining Cadastral Office (MCO), confirmed that affected titles include 584 exploration licences, 65 mining leases, 144 quarry licences, and 470 small-scale mining permits.
Minister Dele Alake, who authorised the action, stressed that the move is aimed at ending speculative hoarding of mineral titles and opening access to genuine operators.
“Nigeria cannot afford a system where licences are treated like trading chips while capable investors struggle to access viable sites. Payment of annual service fees is the most basic proof of commitment,” Alake stated.
He warned that revoked operators remain liable for outstanding fees, adding that the Economic and Financial Crimes Commission (EFCC) will be involved to enforce accountability.
Tackling Licence Racketeering
This is not Nigeria’s first crackdown. In April 2024, the ministry revoked 924 idle titles in a bid to dismantle “licence racketeering,” where permits were traded on a shadow market rather than developed.
According to Alake, such practices discouraged foreign investors, who were misled into believing that access to mining opportunities could only be secured via the black market.
“Our reforms are designed to restore confidence, promote transparency, and reward genuine participation—not speculation,” he explained.
Opening the Door for Fresh Investment
With this latest round, the total number of revoked licences under the current administration has climbed to 3,794, covering operators who defaulted on fees or failed to commence activity.
The government argues that freeing up these assets will allow serious local and foreign investors to step in, particularly in high-demand minerals such as lithium, gold, and limestone.
Incentives, including tax breaks, profit repatriation, and mandatory in-country processing of minerals, are already in place to attract long-term commitments.
Africa’s Mining Frontier
As Africa’s top oil producer seeks to diversify away from crude, the reforms position Nigeria as a rising frontier for mineral investment. Officials believe the clampdown on speculation, combined with ongoing reforms, will unlock billions in revenue, create jobs, and accelerate industrial growth.
Analysts say that if consistently enforced, these measures could finally reposition Nigeria’s mining sector from a marginal contributor to a central pillar of economic transformation.
