The Federal Government has defended its decision to revoke the mining licences of Basin Mining Limited, insisting the action was based solely on the company’s failure to meet its statutory obligations and not on any preference for Chinese investors as alleged in recent media reports.
The federal government, through a statement issued on Sunday by the Special Adviser on Media to the Minister of Solid Minerals Development, Dr Dele Alake, Kehinde Bamigbetan, also dismissed allegations that the minister was handing Nigeria’s mineral wealth to Chinese interests, describing the claims as false, misleading and part of a campaign to discredit ongoing reforms in the mining sector.
According to Bamigbetan, Basin Mining Limited’s mineral titles were revoked after the company allegedly failed to pay statutory annual service fees amounting to N1.223 billion in 2024, a debt he said later rose to about N2.494 billion before the licences were eventually cancelled.
He alleged that despite not being the holder of the revoked licences, British-Australian firm Jupiter instituted arbitration proceedings against the Federal Government, claiming a violation of the Nigeria-United Kingdom Bilateral Investment Treaty.
The presidential aide further alleged that the company had since resorted to media campaigns and cyber attacks against Alake in an effort to pressure the government into reversing the revocation.
“The revocation was carried out in accordance with Nigerian mining laws and had nothing to do with the nationality of any investor,” he said.
Responding to claims that Alake favours Chinese investors, Bamigbetan said the minister had visited China only twice in three years—first as a member of President Bola Tinubu’s delegation on a state visit and later at the invitation of the Chinese government for China Mining Week 2025.
He noted that Alake had attended more investment conferences in Western countries than in China, including three editions each of the London Mines and Money Conference and Mining Indaba in South Africa, as well as two official visits to Australia to promote investment opportunities in Nigeria’s mining sector.
Bamigbetan maintained that Nigeria’s policy of opening the mining industry to foreign investment predates the current administration, tracing it to the Nigerian Investment Promotion Commission Act and the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act of 1995, which liberalised investment across virtually all sectors of the economy.
He explained that the minister’s reforms have instead focused on enforcing compliance with mining regulations and promoting local value addition by requiring investors to process minerals within Nigeria before export.
According to him, several Chinese firms have responded by establishing mineral processing plants in the country, while some licence holders failed to develop their mining assets despite having the opportunity to do so.
The statement also highlighted the long history of Nigeria-China cooperation in the mining sector, including geological mapping, mineral exploration and technical partnerships dating back to 2011.
Bamigbetan said President Tinubu’s 2024 state visit to China, during which more than 20 bilateral agreements were signed, further strengthened investment ties between both countries.
He, however, rejected suggestions that Western investors were being sidelined, noting that more than 300 companies from Europe, North America, Canada and Australia currently operate in Nigeria’s solid minerals sector.
He added that the Nigerian Geological Survey Agency continues to partner French and German institutions on geological data development, while the World Bank supported the development of the new Solid Minerals Sector Roadmap.
Bamigbetan said reforms under Alake, including the establishment of the Nigeria Solid Minerals Company, deployment of Mining Marshals, stricter enforcement of mining laws and the commissioning of mineral processing plants, were already yielding measurable results.
He insisted that the Federal Government would not reverse the revocation of mining licences belonging to companies that failed to comply with Nigerian laws, regardless of media campaigns mounted against the minister.