By EMMANUELLA ANOKAM

The Nigeria Extractive Industries Transparency Initiative (NEITI) says the Federal Government?s revocation of 1,263 solid minerals operational licences aims to sanitize and boost investment in the sector.

The development is sequel to the validation of the findings of the NEITI annual sector audit report.

A statement from the Presidency, on Monday, declared the licences revoked for various infractions including failure to pay mandatory licensing fees and other statutory financial obligations to the government.

Those affected include 584 exploration licences, 65 mining leases, 144 quarry licenses, and 470 small-scale mining leases.

Dr. Orji Ogbonnaya Orji, Executive Secretary, NEITI, while reacting to the sanctions by the Presidency, described the action as bold, timely, and fully consistent with its own annual audit findings.

Orji, in a statement on Monday, 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 NEITI 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 2020 edition of the report reveals that more than 2,000 companies owed the government about N2.76 billion.

He said the earlier reports by NEITI in previous years also followed similar trends.

Orji, while expressing concern over the recurring trend of operators defaulting in their obligation, said earlier reviews also flagged that N654.28 million was still outstanding as payments from 233 companies holding 284 licences.

?These figures underline a persistent culture of non-compliance that has undermined revenue collection and sector credibility.

?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,? he said.

The revocation, he said, would also address the problem of revenue leakages in the system.

?Unpaid service fees and royalties, which run into several billions of Naira in recent years, represent resources urgently needed to fund government development priorities, including infrastructure, education, and healthcare.

?Enforcing compliance will boost revenue inflows, while also helping to build transparency and accountability in the sector.

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

While commending the Ministry of Solid Minerals Development and the Mining Cadastral Office for acting decisively on the problem, Orji emphasized the need for the steps to be sustained.

The latest number brings to 3,794 solid minerals titles revoked under the present administration.

This followed 619 licences revoked for non-payment of service fees and 912 others revoked last year for dormancy. (NAN)

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