Federal Govt To Revoke More Mining Licences, Insists On Local Value Addition

The federal government has announced its intention to revoke more mineral titles held by companies that violate regulations. Dr. Dele Alake, the Minister of Solid Minerals Development, made this declaration during the launch of the Mines Marshals, a specialized force aimed at combating illegal mining across Nigeria. He emphasized that the revocation of licenses is part of the ministry’s ongoing efforts to sanitize the solid minerals sector, which is a key agenda under his leadership.

Previously, in November 2023, the government had revoked 1633 mineral titles due to various infractions committed by the companies involved. Dr. Alake reiterated that prospective investors seeking mining licenses must demonstrate concrete plans for local value addition to minerals, which would contribute to employment generation and wealth creation in Nigeria.

Acknowledging the support of lawmakers in restructuring the mining sector, Dr. Alake emphasized the importance of collaboration between the executive and legislature in improving Nigeria’s economic fortunes. He also highlighted Nigeria’s leadership role in promoting local value addition within the African Minerals Strategy Group (AMSG), emphasizing the continent’s unified approach to this issue.

Regarding security, Dr. Alake revealed the finalization of a new security outfit to protect the nation’s natural resources, incorporating the existing structure of the Nigeria Security and Civil Defence Corps (NSCDC) with advanced technology and specialized training. This new outfit aims to enhance security around mine sites, prevent theft and illegal mining, and will operate under the Ministry of Solid Minerals Development.

Dr. Alake emphasized the importance of technology-driven security measures, noting that modern security architecture relies heavily on technology rather than solely on personnel. He announced plans to inaugurate the command structure of the new security outfit soon.

Additionally, Dr. Alake highlighted the significant contributions of sub-national entities to mining development, particularly through the Mineral Resources and Environmental Management Committee (MIREMCO). He also underscored the renewed international interest in Nigeria’s mineral resources, attributing this to the ministry’s seven-point agenda.

In response, the chairman of the House Committee on Solid Minerals, Hon. Gaza Gbefwi, expressed appreciation for the cooperation between the ministry and the legislature. He affirmed the committee’s commitment to supporting reforms through necessary legislation, aiming to position the mining sector for substantial contributions to the nation’s economy.