The Nigeria Extractive Industries Transparency Initiative (NEITI) has supported the Federal Government following the revocation of 1,263 mineral licenses over non-payment of statutory fees and royalties.
In a statement on Monday, it described the move as “bold, timely, and consistent” with its own findings.
The agency revoked licenses include: 584 exploration licenses, 65 mining leases, 144 quarry licenses, and 470 small-scale mining leases.
A total of 3,794 mineral titles have now been revoked under the current administration.
This figure includes 619 licenses cancelled for non-payment of service fees and 912 revoked in the previous year due to inactivity.
The government agency revealed that its 2023 Solid Minerals Industry Report identified 1,619 companies owing the government N680.3 million in unpaid fees and royalties.
NEITI revealed similar patterns in previous reports. In 2021, 238 companies with 289 valid licenses owed N1.06 billion. In 2020, more than 2,000 companies were in arrears, owing a combined N2.76 billion, and earlier audits also flagged N654.28 million in outstanding payments from 233 companies holding 284 licenses.
NEITI’s Executive Secretary, OrjinOgbonnaya Orji, stated: “These figures highlight a persistent culture of non-compliance that undermines revenue generation and erodes the credibility of the solid minerals sector.
“Revoking these licenses sends a clear message that mineral titles are not speculative assets, but legal instruments that come with defined obligations.”
Ogbonnaya Orji emphasised that these sanctions will discourage future defaults and pave the way for serious investors equipped with the necessary capital and technology to engage in responsible exploration and mining.
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He further noted that releasing these licenses from dormant or non-compliant operators will: Open access to genuine investors, increase competition, enhance the overall investment climate, and improve revenue collection
According to him, beyond encouraging investment, the revocation targets a long-standing issue of revenue leakages, adding that billions of naira in unpaid fees could have supported critical sectors like infrastructure, education, and healthcare.
The agency stressed that enforcing compliance not only boosts revenue but also promotes transparency and accountability—core elements for rebuilding trust in the extractive sector. In the long term, these actions align with Nigeria’s goal of economic diversification, shifting reliance away from oil and positioning solid minerals as a key driver of sustainable growth.
The agency praised the Ministry of Solid Minerals Development and the Mining Cadastral Office for acting decisively on issues NEITI has repeatedly raised in its audits.
It, however, called for the urgent development of a comprehensive reform strategy for the solid minerals industry.
