*The Nigerian Government dismisses alleged bias, insisting the revocation of Basin Mining Limited’s licences was due to the company’s apparent failure to pay statutory annual service, totalling N1,223,750,000 on mineral titles, stating the Minister’s Seven-Point Agenda has introduced reforms aimed at promoting local value addition while strengthening enforcement of mining regulations in the ecosystem
Gbenga Kayode | ConsumerConnect
Nigeria’s Federal Ministry of Solid Minerals Development (MSMD) has rejected certain allegations that the Federal Government is handing the West African country’s mineral wealth to Chinese interests.
ConsumerConnect reports the government emphasised that the revocation of Basin Mining Limited’s mining licences was based solely on the company’s failure to meet its extant statutory obligations in the mining industry.
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Responding to allegations made by Steve Kefas, Mr. Kehinde Bamigbetan, Special Adviser to the Minister for Solid Minerals Development on Media, stated that Basin Mining Limited’s licences were revoked after the company failed to pay statutory annual service fees amounting to N1,223,750,000 on Mineral Title Numbers 45454ML, 45117ML, 45118ML, 40532ML and 40533ML in 2024.
Bamigbetan said the outstanding liability had increased to N2,494,000,000 by the time the licences were eventually revoked.
The Minister’s media aide also alleged that Jupiter, which he described as a British-Australian firm “alien to the transaction”, subsequently sued the Federal Government at an international arbitration court over a purported violation of a bilateral treaty between Nigeria and the United Kingdom (UK).
The Ministry also explained that rather than allow the Nigerian legal process to run its course, Jupiter engaged propagandists, including Kefas, to mount a campaign against Dr. Dele Alake, Minister for Solid Minerals Development, in an attempt to secure a reversal of the licence revocation.
Bamigbetan reportedly dismissed claims that Minister Alake was favouring Chinese investors over their Western counterparts.
According to him, the Minister travelled to China only twice on official assignments since assuming office—first as part of President Bola Ahmed Tinubu’s state visit and later at the invitation of the Chinese government to attend China Mining Week 2025.
He further stated that Dr. Alake had attended more mining investment conferences in Western countries, including the London Mines and Money Conference, Mining Indaba in Cape Town, South Africa, and Africa DownUnder, held in Australia.
Foreign investments and policy on solid minerals
Bamigbetan explained that Nigeria’s policy of opening the solid minerals sector to foreign investment predates the current administration.
The media aide as well traced this approach to the investment liberalisation reforms of 1995.
The regulation established the Nigerian Investment Promotion Commission (NIPC), and allowed foreign participation in most sectors of the Nigerian economy.
On Minister’s Seven-Point Agenda for industry
Referencing the Minister’s Seven-Point Agenda, Bamigbetan also stressed the initiative had identified gaps in the implementation of the liberalisation policy.
It further introduced reforms aimed at promoting local value addition while strengthening enforcement of mining regulations.
He noted that several Chinese companies responded to the government’s policy by establishing mineral processing factories in Nigeria.
He, however, alleged that Basin Mining “sat on the opportunity until it expired.”
Local, foreign okays must obey Nigeria’s mining regulations
Bamigbetan stated that over 300 companies from Europe, America, Canada and Australia are active in Nigeria’s solid minerals sector as a multinational industry.
The media aide said the Ministry has continued to engage Western investors through international mining conferences and investment forums.
According to him, all local and foreign investors operating, or still seeking to operate in Nigeria must comply with the country’s mining laws.
The government maintained that the revocation of Basin Mining Limited’s licences was based on regulatory enforcement rather than the nationality of any investor.
Revocation of 1,633 operating licences of mining firms
It is recalled the Federal Government, few years ago, revoked the operating licence of 1,633 mining title holders, for failure to pay annual service due to the government’s coffer.
Alake, Honourable Minister for Solid Minerals Development, had disclosed this development during a press conference, in Abuja, FCT.
The Minister had explained that the move was aimed at sanitising the sector, and freeing up space for new investors who will live up to expectations in this regard.
He stated the holders of exploration titles are expected to pay N1,500 per cadastral unit not exceeding 200 units, while those holding titles covering more than 200 units pay N2,000 per unit.
Alake equally decried the failure of companies to pay up as and when due.
He stated: “It is, indeed, very unconscionable for corporate bodies making huge profits from mining to refuse to give the government its due by failing to pay their annual service fee.
“It is indeed a reasonable conjecture that such a company will even be more unwilling to pay royalties and honour its tax obligations to the government.
“The amount the companies are being asked to pay is peanut compared to their revenue projections.”
Alake said that in compliance with the Nigerian Minerals and Mining Act 2007, the Mining Cadastre Office on October 4, 2023, began the process of revoking 2,213 titles, including 795 exploration titles, 956 small-scale mining licences, 364 quarry licences and 98 mining leases.
The government later published in the Federal Government Gazette Number 178, Volume 110 of October 10, 2023, with the notice of revocation for defaulting in the payment of the annual service fee.
Alake also explained: “The mandatory 30 days expired on November 10, 2023.
“Only 580 titleholders responded by settling their indebtedness.
“With this development, the MCO recommended the revocation of 1, 633 mineral titles including exploration licence, 536; quarry licence, 279; small-scale mining licence, 787 and mining lease, 31.
The Minister declared: “In line with the powers conferred on me by the NMMA 2007, Section 5 (a), I have approved the revocation of the 1,633 titles.
“I hereby warn the previous holders of these titles to leave the relevant cadaster with immediate effect as security agencies shall work with the mines inspectorate of the Ministry to apprehend any defaulter found on any of the areas where titles have been revoked.”
He as well explained that the philosophy of the Nigerian Minerals and Mining Act 2007 is to establish a rational system of administering titles transparently, and comprehensively to ensure a seamless transition from reconnaissance to exploration, and from exploration to mineral extraction.
He also warned all illegal miners to deviate from the Act or face the wrath of the law in Nigeria.