The Federal Government has revoked additional 924 dormant mining licenses.

Minister of Solid Minerals Development, Dr Dele Alake announced this on Wednesday in Abuja as he decried the racketeering of the issuance of the licences.

He told newsmen that mining licence racketeering was impeding the development of the sector and obstructing genuine investors from showing interest in Nigeria’s mines.

Licences revoked were 528 for exploration; 22 mining leases, 101 quarry licences and 273 small-scale mining licences.

The minister explained that a grace period of 30 days was given to defaulters to rectify their statuses, and to state reasons for dormancy on the sites allocated to them in line with Constitutional provisions.

He said that 963 licences were published in the official gazette of the Federal Government in December 2023 awaiting revocation.

Out of these, only 39 of the listed licence holders responded to the warning as they either moved to site immediately or they stated challenges hindering their operations, he added.

Alake stated that the revocation of the licences was taken to sanitise and reposition the mining sector to boost Nigeria’s economic profile and to accelerate its industrialisation.

He noted that the “first-come, first-served’’ rule in the licencing regime was a disincentive for genuine investors as the rule prohibited issuance of fresh licence on a site already allocated.

The ministry revoked 1,663 mining licences in November 2023 because of failure by licensees to pay statutory charges and other dues to the Federal Government.

Alake said that following the revocation of the 1,663 licences in 2023, government received a lot of pressure to reconsider the punitive measure.

According to him, in response to the pressure, government issued a policy for defaulters to make restitution and show remorse in order to be considered for reinstatement.

He said that the restitution varied depending on the category of licence revoked.

“The highest, which is on mining attracts a restitution N10 million per revoked licence payable to the Federal Government.

“For the small-scale licences, the restitution is N7.5 million for reinstatement and for exploration licence, the restitution is N5 million,’’ Alake said.

The minister warned in his 2024 New Year goodwill message that more mining licences would be revoked for other categories of defaulters.

He warned also that Nigeria’s mining sector would not continue to suffer from low investments because of nefarious activities of individuals who bought licences for promising mine sites only to resell them at the illegal market.

He added that the practice was tarnishing Nigeria’s image and was diverting funds that could be used for exploration to the illegal market to acquire licences at exorbitant prices.

Alake stressed that Nigeria was losing a significant amount of Foreign Direct Investment to the untoward practice. (NAN)