The Nigeria Extractive Industries Transparency Initiative has commended the federal government for revoking 1,263 mineral licenses for failure to pay licensing fees and other statutory financial obligations.

The licenses affected include 584 exploration licenses, 65 mining leases, 144 quarry licenses, and 470 small-scale mining leases. With this move, the total number of mineral titles revoked under the present administration has now risen to 3,794.

NEITI described the government’s action as bold, timely, and fully consistent with its own audit findings. According to NEITI, its 2023 Solid Minerals Industry Report found that 1,619 companies owed the Federal Government N680.3 million in unpaid fees and royalties.

Earlier reports had flagged similar trends, with 238 companies holding 289 valid licenses owing N1.06 billion in service fees in 2021, and N2.76 billion owed by more than 2,000 companies in 2020.

NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, remarked, “These figures underline a persistent culture of non-compliance that has undermined revenue collection and sector credibility. By revoking the licenses, the government strongly conveys that mineral titles are not speculative assets to be hoarded but legal instruments tied to clear obligations.”

Dr. Orji added that these sanctions would deter further defaults and open up fresh opportunities for credible investors willing to put capital and technology into genuine exploration and mining.

The revocation also addresses the problem of revenue leakages, with unpaid service fees and royalties representing resources urgently needed to fund government priorities, including infrastructure, education, and healthcare. Enforcing compliance would boost revenue inflows, while also helping to build transparency and accountability in the sector.

In the long run, this strengthens Nigeria’s broader economic diversification agenda, reducing dependence on oil and positioning solid minerals as a reliable source of sustainable growth.