On 11 June 2026 in Abuja, Nigeria’s Minister of Solid Minerals Development, Dele Alake, reiterated that mining permits and public grants will henceforth be issued only to operators deemed “deserving”, meaning those able to demonstrate technical and financial capacity and a credible work plan to develop their deposits.The minister stressed that the support schemes put in place for mining exploration and research would no longer be distributed on the basis of personal relationships but on the quality of projects and the regulatory compliance of applicants.

This stance forms part of a broader strategy to reform the solid minerals sector, through which Abuja seeks to attract more structured exploration capital while cleaning up the existing portfolio of mineral titles.The ministry recently launched the EMERGE grant programme, implemented by the Solid Minerals Development Fund, to finance exploration projects, processing technologies and research, with the goal of generating more reliable geological data and strengthening the country’s appeal to specialised investors.

“Grants and mineral titles will go to those who show a real capacity to explore and develop projects, not to those who simply hoard licences.” — Dele Alake, Minister of Solid Minerals Development, APAnews

A merit‑based regime anchored in the cadastre

Beyond the rhetoric, implementation of this merit‑based approach rests on the existing legal framework and on the Nigeria Mining Cadastre Office (MCO), which is responsible for administering mineral titles.The MCO, created following the 2007 Minerals and Mining Act, is mandated to manage mineral titles in a transparent and accountable manner, including verifying that applicants meet the required capacity thresholds and comply with the obligations attached to each category of licence. Official procedures already require that applications for permits — whether prospecting rights or exploration licences — include evidence of technical and financial capability, as well as a work plan detailing exploration programmes and resource evaluation.

This emphasis on merit comes after a wave of revocations that underscored the ministry’s willingness to sanction non‑performing title‑holders.In 2025, acting on a recommendation from the MCO director‑general, the minister revoked 1,263 mining licences held by operators that had failed to meet their statutory obligations, following a notice published in the federal government gazette and a compliance window. Public data show that between 2019 and 2023 the number of active mining leases evolved against a backdrop of regulatory reviews intended to reinforce compliance and project sustainability, confirming a sorting process between dormant and active titles.

Signals to more structured investors

For institutional investors, the statement that permits will go to “deserving” applicants is both an additional hurdle and a signal that the authorities are open to more sophisticated capital.The current legal framework maintains the federal government’s exclusive ownership of minerals and assigns the minister responsibility for granting titles, while providing that once granted they become enforceable legal rights and that transfers are subject to ministerial approval and registration with the MCO. This requirement for compliance is gaining weight as sizeable projects, notably in lithium, see the approval of multiple exploration licences and their transfer into mining joint ventures, for portfolios covering several hundred square kilometres in Oyo and Kwara states.

At the same time, Abuja is tightening discipline around payments and collection of royalties.Since 1 January 2026, the collection of mineral royalties has been centralised within the Nigeria Revenue Service, under new tax laws, following an agreement between the Minister of Solid Minerals Development and the head of the tax administration. Combined with more selective permit allocation, this centralisation aims to curb revenue leakages and more closely align fiscal obligations with the actual performance of projects.

What changes for project sponsors

For existing operators and new entrants alike, the bar is being raised on three fronts:

• more technically robust applications, demonstrating capacity to explore and develop deposits instead of merely holding speculative titles;
• strict compliance with work and reporting obligations, under the threat of revocation as illustrated by the withdrawal of hundreds of licences;
• more integrated fiscal monitoring, with greater traceability of royalties and financial obligations.

Mining law practitioners note that preparing a solid application — preliminary studies, work plan, proof of funding — is becoming decisive for access to titles, in a context where the authorities increasingly use the discretion granted to them by law to adjust conditions and fee levels for licences. The new schedules of application and renewal fees announced by the authorities for different categories of permits further reinforce the economic filtering of candidates.

Next milestone: aligning ‘deserving’ status with deliverable projects

The public embrace of meritocracy in the award of permits and grants marks a break with speculative licence hoarding. However, the real test will be the authorities’ ability to translate these criteria into deliverable projects and formal, exportable production. Upcoming waves of exploration grants and calls for projects following the minister’s announcement will provide an early gauge of how consistently the discourse is reflected in the actual selection of beneficiaries.  The results of the first cycles of the EMERGE programme — in terms of the number of projects funded, data generated and new resources identified — will be a key indicator of how the notion of “merit” translates into mineral mapping and the flow of new permits over the next two to three years.