Isiaka Mustapha, CEO/Editor-In-Chief, People’s Security Monitor

Mining is one of Nigeria’s most promising sectors for economic diversification, yet for decades it has been crippled by fraudulent practices, political manipulation, and gross underutilisation of resources. Among the most damaging of these practices is the proliferation of dormant mining licences titles issued to individuals and companies who have no intention of carrying out genuine exploration or production. These licences often end up in the hands of politically connected individuals who use their positions of power to influence and manipulate the licensing process. Rather than being instruments for industrial growth, they are hoarded as speculative assets, kept inactive for years, and later sold to genuine investors at exorbitant prices.

The process is often riddled with abuse. Political figures, senior government officials, or their associates find ways to fast-track and secure multiple licences, particularly in mineral-rich areas, without following due process. In many cases, these licences are registered under the names of family members, shell companies, or close associates, making detection difficult. Instead of developing the sites, these holders deliberately keep them dormant, thereby blocking genuine investors from gaining access to strategic mineral resources. This practice not only undermines transparency but also creates artificial scarcity in the mining sector, discouraging real investment.

The consequences for the Nigerian economy are severe. Minerals that should be feeding local industries remain untapped, forcing manufacturers to import raw materials at higher costs and undermining the government’s drive for economic self-sufficiency. Dormant licences generate no royalties, taxes, or community development levies, depriving the government and host communities of vital income. They also eliminate job creation opportunities in a sector that has the potential to employ thousands of skilled and unskilled workers. In the absence of legitimate operations, illegal miners take over abandoned sites, operating without regulation, destroying the environment, and depriving the state of revenue. The result is a mining sector that contributes less than 1 percent to Nigeria’s GDP, despite the country’s enormous mineral wealth.

Revoking these licences has therefore become an urgent economic necessity. By reclaiming titles from speculative holders, the government can open access to genuine operators with the technical expertise and financial capacity to begin production. This would not only revitalise the sector but also restore investor confidence, sending a clear message that Nigeria is serious about mining reforms and will no longer tolerate corruption or political interference. Such decisive action would also significantly increase government revenue through royalties and taxes, while enabling local industries such as steel, cement, ceramics, and electronics to source raw materials domestically rather than rely on costly imports. Active mining operations would bring direct benefits to host communities through corporate social responsibility initiatives such as roads, schools, and health centres, thereby improving the quality of life in these areas.

The decision by President Bola Tinubu’s administration to revoke over 900 dormant licences in 2024 and to proceed with plans to cancel over 1,000 more is one of the boldest steps taken in recent years to clean up the sector. It reflects a clear commitment to reposition mining as a driver of industrialisation and economic diversification. By aligning the Ministry of Solid Minerals Development with the Ministry of Steel Development, the administration is ensuring that Nigeria moves from being a country that exports raw minerals and imports finished goods to one that uses its mineral wealth to create jobs, develop technology, and build lasting national prosperity. This reform will also help Nigeria compete favourably with other mining hubs in West Africa, attracting local and foreign investments that had previously been deterred by corruption and bureaucratic manipulation.

The fraudulent hoarding of mining licences by privileged individuals has, for too long, kept Nigeria’s mineral wealth locked underground, benefitting only a few at the expense of millions. By taking the courageous decision to revoke these dormant titles and redistribute them to credible investors, President Tinubu’s administration has demonstrated political will, economic foresight, and a readiness to dismantle entrenched corruption. If sustained, this policy could become one of the most transformative reforms in Nigeria’s recent history, unlocking the vast potential of the mining sector to power industrial growth, create jobs, and secure prosperity for generations to come.