NEITI backs revocation of mining licences, says it’ll promote transparency

The Nigeria Extractive Industries Transparency Initiative (NEITI) has endorsed the federal government’s decision to revoke 1,263 solid minerals operational licences.

According to NAN, Ogbonnaya Orji, executive secretary of NEITI, spoke in a statement on Monday.

He said the revocation of mining licences will sanitise and boost investment in the sector, sequel to the validation of the findings of the NEITI’s annual sector audit report.

The executive secretary recalled that NEITI had, in its 2023 solid minerals industry audit, reported that 1,619 companies owed the federal government about N680.3 million in unpaid fees and royalties.

He said the organisation also flagged similar trends in its 2021 audit report, which showed that about 238 companies operating in the sector with 289 valid licences were owing the government about N1.06 billion.

According to Orji, the NEITI report showed that over 2,000 companies owed the government about N2.76 billion in 2020, consistent with trends in previous years’ reports.

He raised concern over the N654.28 million in outstanding payments by 233 companies with 284 licences flagged by earlier reviews.

“These figures underline a persistent culture of non-compliance that has undermined revenue collection and sector credibility,” the executive secretary said.

“By revoking the defaulting licences, the government has sent a strong message to those who may want to indulge in similar infractions that solid mineral titles are not speculative assets to be hoarded, rather legal instruments tied to clear obligations that must be discharged.

“These sanctions would definitely not only deter further defaults, but open up fresh opportunities for credible investors willing to put capital and technology into genuine exploration and mining expeditions in the sector.”

Orji said the revocation will address revenue leakages and boost inflows, thereby supporting government development priorities like infrastructure, education, and healthcare.

This, according to the executive secretary, will also promote transparency, accountability, and economic diversification, positioning solid minerals as a reliable source of sustainable growth.

While commending the ministry of solid minerals development and the mining cadastral office (MCO) for acting decisively on the problem, Orji emphasised the need for the steps to be sustained.