Federal Government to Revoke 1,000 More Dormant Mining Licences

In another major push to sanitize Nigeria’s mining industry and foster sustainable industrial growth, the Federal Government has announced plans to revoke over 1,000 additional dormant mining licences. This move follows a similar action taken last year and signals the administration’s resolve to reposition the country’s solid minerals sector as a foundation for national prosperity.

Dr. Dele Alake, Nigeria’s Minister of Solid Minerals Development, made this known during his remarks at the opening ceremony of the maiden National Steel Summit held in Abuja on Wednesday. Speaking to key stakeholders, policymakers, and investors, the minister outlined sweeping reforms aimed at restoring order and transparency to the country’s licencing system.

According to Dr. Alake, too many licences have been acquired by speculators who hold onto them without engaging in any productive activity. These licences, instead of being used to stimulate development, have been turned into trading chips that distort the sector.

Earlier in May 2024, the Federal Government had already revoked 924 inactive licences, which included 528 exploration licences, 20 mining leases, 101 quarry licences, and 273 small-scale mining licences. The decision at the time was met with mixed reactions but marked a clear turning point in efforts to overhaul the sector.

Speaking firmly, the minister stated, “To clean up our licensing system, I had to revoke over 900 licences which were dormant titles, and they had become tools in the hands of speculators rather than instruments of development. I wish to announce here again that very shortly I am going to announce another over 1,000 licences that will be revoked.”

This renewed wave of revocations is aimed at eliminating ghost players in the sector while paving the way for genuine investors to access mining opportunities and help build a strong industrial base. Dr. Alake emphasized that the solid minerals sector is no longer a playground for opportunists but a core driver of national growth and regional leadership.

Beyond cleaning up licensing, the government’s broader vision is to use Nigeria’s vast mineral wealth to generate jobs, power local industries, and support a diversified and resilient economy. “We are laying the foundation for Nigeria where mineral resources create Nigerian jobs, feed Nigerian industries, and build Nigerian prosperity,” the minister said.

The National Steel Summit, themed “Rebuilding and Consolidating Nigeria’s Steel Industry: Collaborative Action for Sustainable Growth and Global Competitiveness,” aligns with the administration’s economic diversification plan. According to Dr. Alake, President Bola Tinubu’s administration is committed to positioning Nigeria as the steel powerhouse of West Africa.

This vision, he explained, will be achieved through sustainable practices, private-sector partnerships, and a shift away from exporting raw minerals. Instead, the government wants to see more beneficiation and value-added production within the country. In other words, Nigeria must move from being a supplier of raw resources to a producer of finished goods, creating jobs and building industries at home.

Central to this transformation is a coordinated approach between the Ministry of Solid Minerals Development and the Ministry of Steel Development. Dr. Alake noted that reforms in mineral policies must align directly with the steel sector’s production needs.

“Our mineral policies must directly feed into steel production capacity. This mutual dependency must be synergised and tailored to the development priorities of this government,” he said, underscoring the importance of collaboration between key ministries.

Echoing this sentiment, the Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, stated that the government is working on targeted reforms in industrialization, manufacturing, and innovation. The goal, she explained, is to make the best use of Nigeria’s natural resources by processing them locally and adding value that can drive sustainable economic growth.

Dr. Oduwole said, “Through special economic corridors and trade and labor infrastructure, the Federal Ministry of Industry and Investment is focused on creating platforms that will crystalize investment. We aim to integrate our steel industry into global and regional value-added markets and deploy our resources strategically. We are committed to deep, sustained reforms to make Nigeria a competitive destination for steel investment.”

The importance of the steel industry in national development cannot be overstated. The Minister of Steel Development, Mr. Shuiabu Audu, described steel as the backbone of industrialization. From infrastructure and automobiles to electronics, military hardware, shipbuilding, and telecommunications, steel is a critical base material for any economy that aims to industrialize.

Despite Nigeria’s abundance of raw materials needed for steel production, the country lacks functional, integrated steel plants. This has limited its ability to fully benefit from its natural endowment. Mr. Audu pointed out that robust iron and steel production can not only create employment but also drive self-sustaining economic growth and diversification.

He said the summit was designed to take stock of the current state of the steel industry, highlight investment opportunities, identify policy and infrastructure gaps, and propose actionable recommendations. It also serves as a forum for deepening partnerships and encouraging knowledge exchange between industry experts and government leaders.

As part of the long-term strategy, the Federal Government is aiming to develop a unified and sustainable plan for the sector. This includes expanding the value chain, improving technology adoption, and ensuring that Nigeria’s resources are used in a way that benefits both the present and future generations.

While the revocation of dormant licences may be viewed as a bold and aggressive move, government officials argue that it is a necessary step toward unlocking the true potential of Nigeria’s mining and steel sectors. By weeding out inactive players and tightening oversight, the government hopes to make the sector more transparent, accountable, and investment-friendly.

Looking ahead, these reforms could mark the beginning of a new chapter in Nigeria’s industrial journey—one where minerals no longer lie fallow under unused permits, but are turned into roads, buildings, machines, and opportunities.