For an investor in the Nigerian mining sector, a handshake and a promise are not enough. With a booming but largely informal market, the risk of encountering fraud is real. From fake licenses to counterfeit documents, scammers have become sophisticated in their attempts to defraud unsuspecting investors.
This guide is your ultimate defense. It provides a simple, authoritative roadmap on how to verify the validity of a mineral license in Nigeria and outlines the most common red flags to look for. By following these steps, you can protect your investment and ensure your business is built on a foundation of legal compliance and trust.
The Single Source of Truth: The MCO Portal
The Nigerian Mining Cadastre Office (MCO) is the sole authority for the administration of all mineral titles in the country. To ensure transparency and prevent fraud, the MCO maintains a public, online database of all active, expired, and revoked licenses.
Step-by-Step Verification Process:
- Visit the office or Official MCO Portal: Do not rely on third-party links. The official portal is your only credible source.
- Conduct a Search: Use the search bar to look up the license by its unique number, the company’s name, or the specific location (cadastral unit).
- Review the Results: Once the search returns a result, carefully review the details. You must match them against the document provided by your potential partner or supplier.
The 5-Point Checklist for a Valid License
When you verify a license, do not just check if it exists. A scammer may show you an expired or revoked license. Follow this 5-point checklist to confirm its validity:
- Status: Is it “Active”? A valid license must show a status of “Active” on the MCO portal. If it says “Expired,” “Revoked,” or “Suspended,” the license is not valid for any operations.
- Type: Does it Match the Activity? Ensure the license type matches the proposed business. A “Reconnaissance Permit” is for searching, not for full-scale mining. A “Quarry Lease” is for granite, not gold.
- Mineral: Is it the Right Resource? Check that the license explicitly lists the mineral you are interested in. A gold mining license is not valid for lead and zinc, and vice versa.
- Location: Is the Area Correct? The license must match the exact location of the mining site. Scammers often show a valid license for one area and a fake site in another.
- Company Name: Does it Match? Ensure the license is held in the name of the company you are dealing with. A fraudulent party may show a license belonging to a different, unrelated company.
Common Scams and Red Flags to Watch For
- The “Business Name” Scam: A fraudster will claim to be a “registered company” with a license when they have only registered a business name with the CAC. Remember, only a Limited Liability Company can hold a mineral license.
- Cash-Only Transactions: Any request for large, upfront cash payments is a massive red flag. Legitimate businesses with a valid SCUML certificate will operate through formal bank transfers.
- Fake Government Connections: Scammers often claim they can get you a license through an “inside connection,” bypassing the official MCO process. This is a complete lie. The MCO is the only body with this authority.
- Unlicensed Suppliers: A seller who cannot provide a valid “Permit to Possess and Purchase Minerals” from the MSMD is likely dealing in illegal goods.
Navigating this complex landscape requires more than just knowing where to look-it requires professional expertise. Our Mining Site Acquisition Support in Nigeria service is designed to handle this entire due diligence process for you, from verifying licenses on the ground to ensuring your transactions are secure.
If you are a serious investor seeking to protect your capital from fraud, our Mining & Mineral Trading Company Setup (Nigeria) service is a comprehensive, done-for-you solution that handles every aspect of your legal and regulatory setup, ensuring your business is established on a solid foundation of legal excellence.
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