Securing a mining license in Nigeria is the most important legal step before conducting any mineral exploration or mining activity. If you are asking how to get a mining license in Nigeria, what documents are required, or the cost of a mining license in Nigeria in 2026, this guide explains everything clearly — based on the provisions of the Nigerian Minerals and Mining Act (2007).

Operating without a valid mineral title is illegal.
Operating with the wrong title can be just as dangerous.

Understanding the correct license category, statutory requirements, process timeline, and compliance obligations will save you from costly rejection, delays, or revocation.

Let’s break it down step-by-step.

Types of Mining Licenses in Nigeria

Under the Nigerian Minerals and Mining Act (2007), mineral titles are issued in specific classes. Each serves a different operational purpose.

1️⃣ Reconnaissance Permit

This allows preliminary mineral reconnaissance over a large area.

Key Features:

Non-exclusive
Short duration
No drilling allowed
No mineral extraction for sale

This is mainly for surface investigation and early-stage assessment.

2️⃣ Exploration Licence

An Exploration Licence allows more detailed exploration activities including drilling and sampling.

Key Features:

Exclusive rights over the licensed area
Valid for 3 years (renewable)
Requires submission of work programs
Geological reporting obligations

This is suitable for investors validating mineral potential before committing to full mining operations.

3️⃣ Small-Scale Mining Lease

Designed for smaller operations with limited capital and area.

Requirements include:

Defined maximum area
Proof of financial capacity
Environmental compliance
Community engagement framework

This category is common among local operators.

4️⃣ Mining Lease

This is required for large-scale commercial mining operations.

Key Characteristics:

Long-term duration
Exclusive extraction rights
Detailed mine plan required
Environmental Impact Assessment (EIA) mandatory
Community Development Agreement required

This is the highest operational mining title under Nigerian law.

5️⃣ Quarry Lease

Specifically for quarrying construction materials such as granite, limestone, and laterite.

Often used for infrastructure and building materials production.

6️⃣ Water Use Permit

Required where mining operations involve diversion or use of water resources.

Requirements for Each Mining License Category

While requirements vary slightly by title type, the following are generally required under the Act:

Corporate Eligibility

Only a company incorporated in Nigeria can hold a mining lease or exploration licence.

You must provide:

Certificate of Incorporation
Memorandum and Articles of Association
Tax Identification Number
Evidence of paid-up share capital

Proper company formation is foundational.

Technical Requirements

Applicants must demonstrate technical competence.

This may include:

Qualified geologists
Mining engineers
Technical reports
Work program submissions

The Act requires serious operators — not speculative applicants.

Financial Capacity

Proof of financial capability is required.

Regulators assess whether you can:

Execute your work program
Meet environmental obligations
Sustain operations

Weak financial evidence is a common cause of rejection.

Environmental & Community Requirements

For Mining Leases and some Small-Scale Mining Leases:

Environmental Impact Assessment (EIA)
Environmental Protection and Rehabilitation Plan
Landowners’ Consent
Community Development Agreement (CDA)

The Act emphasizes responsible mining.

Economic development must balance environmental protection.

Documentation Checklist for Mining License Application in Nigeria

When applying for a mining license in Nigeria, prepare the following:

Company incorporation documents
Tax clearance certificate
Work program
Geological report
Site coordinates
Evidence of financial capacity
Environmental documentation
Application fees payment evidence

Incomplete documentation is one of the most common reasons applications fail.

Structured preparation reduces delays.

Step-by-Step Process: How to Get a Mining License in Nigeria

Here is the practical roadmap.

Step 1: Register a Proper Mining Company

Ensure your object clauses include mining activities.

Without proper structuring, your license may be challenged.

Step 2: Conduct Geological Due Diligence

Before applying, validate:

Mineral availability
Title availability (no overlapping claims)
Site viability

Applying blindly increases rejection risk.

Step 3: Prepare Application & Documentation

Compile all statutory documents and work programs.

Accuracy in coordinates and documentation is critical.

Step 4: Submit Application Through Official Channels

Applications are processed through the Mining Cadastre Office.

Fees must be paid correctly.

Step 5: Regulatory Review & Verification

Authorities will:

Review documentation
Verify coordinates
Assess technical competence
Confirm financial capacity

If satisfied, approval is granted.

Cost of Mining License in Nigeria (2026 Breakdown)

The cost of a mining license in Nigeria depends on the title category and scale.

Costs may include:

Application fees
Processing fees
Annual service fees
Ground rent
Environmental compliance costs
Professional advisory fees

Exploration licences cost less than full Mining Leases.

However, many investors underestimate professional preparation costs.

Poorly prepared applications may lead to re-submission and financial loss.

Investing in structured guidance reduces long-term cost exposure.

Timeline Expectations

How long does it take to get a mining license in Nigeria?

Typical timeline:

Company setup: 1–2 weeks
Documentation preparation: 2–4 weeks
Regulatory review: 30–90 days

Delays occur due to:

Incomplete documentation
Incorrect coordinates
Overlapping title conflicts
Weak work programs

Proper preparation shortens timelines significantly.

Common Reasons Mining License Applications Are Rejected

Understanding rejection patterns improves approval probability.

Most common reasons:

Incomplete documentation
Incorrect or overlapping coordinates
Weak geological justification
Insufficient financial capacity proof
Failure to meet environmental obligations
Inaccurate company object clauses

Rejection wastes time and capital.

Regulatory Compliance After License Approval

Obtaining a mining license in Nigeria is only the beginning.

You must comply with:

Annual reporting obligations
Work program execution
Environmental monitoring
Royalty payments
Community engagement commitments

Failure to comply can lead to suspension or revocation.

Mining is a structured regulatory activity — not a casual venture.

Why Proper Guidance Reduces Risk

The mining licensing process is technical, legal, and financial.

Most online guides oversimplify the process.

Through the Nigerian Mining Resource Hub, investors and operators gain access to:

Structured licensing guides
Documentation frameworks
Compliance checklists
Advisory support pathways
Mining company formation assistance
Site due diligence support

Instead of navigating fragmented information, you access curated regulatory knowledge aligned with the Nigerian Minerals and Mining Act.

This significantly reduces:

Rejection risk
Documentation errors
Title conflicts
Compliance penalties

Explore mining company set up, structured licensing resources, and advisory support here: Mining & Mineral Trading Company Setup (Nigeria)

Final Thoughts

If you are serious about operating legally in Nigeria’s solid minerals sector, understanding the mining license Nigeria process is non-negotiable.

To recap:

Choose the correct title category
Structure your company properly
Validate your site
Prepare documentation thoroughly
Budget realistically
Comply responsibly

Mining rewards structure.

Preparation reduces risk.

And informed investors move faster.

Frequently Asked Questions (FAQ)

1. What is the main law regulating mining licenses in Nigeria?

Mining activities in Nigeria are regulated under the Nigerian Minerals and Mining Act. This Act defines the different mineral title categories, eligibility requirements, rights of holders, obligations, and conditions for revocation.

All mining licenses must comply with this law.

2. Who can apply for a mining license in Nigeria?

Only a company incorporated in Nigeria can hold an Exploration Licence, Small-Scale Mining Lease, Mining Lease, or Quarry Lease.

Individuals cannot directly hold major mining titles unless structured through a registered Nigerian company.

3. How long does it take to get a mining license in Nigeria?

On average, the process takes between 30 to 90 days after submission, depending on:

Completeness of documentation
Availability of the applied coordinates
Regulatory review speed
Accuracy of the work program

Delays usually occur when applications are incomplete or poorly structured.

4. What is the difference between an Exploration Licence and a Mining Lease?

An Exploration Licence allows investigation, drilling, and sampling to confirm mineral deposits. It does not permit full commercial extraction.

A Mining Lease allows full-scale commercial mining and sale of minerals after exploration has confirmed economic viability.

5. What documents are required to apply for a mining license in Nigeria?

Typically required documents include:

Certificate of incorporation
Memorandum & Articles of Association
Tax Identification Number
Feasibility Study
Geological report
Proof of financial capability
Environmental Impact Assessment
Landowners’ Consent
Payment evidence of statutory fees

Incomplete documentation is the most common reason applications are rejected.

6. How much does a mining license cost in Nigeria?

The cost depends on:

Type of mineral title
Size of the land area
Professional preparation costs
Environmental compliance requirements

Beyond government fees, investors should budget for:

Geological surveys
Environmental Impact Assessment
Technical consultants
Legal advisory services

Under-budgeting is a common mistake.

7. Can a mining license be revoked in Nigeria?

Yes.

Licenses may be revoked for:

Failure to execute work programs
Non-payment of fees or royalties
Environmental violations
Fake Landowners’ Consent Letter
Failure to submit required reports

Compliance is continuous — not optional.

8. Is an Environmental Impact Assessment (EIA) mandatory?

For Mining Leases and Small-Scale Mining Leases, an Environmental Impact Assessment (EIA) is mandatory before operations begin.

Environmental protection is embedded within Nigeria’s mining regulatory framework.

Responsible mining ensures long-term sustainability.

9. Can foreigners obtain a mining license in Nigeria?

Yes, but only through a Nigerian-registered company.

Foreign investors must comply with Nigerian corporate laws and mining regulations.

10. Where can I get structured guidance for mining license applications?

For step-by-step licensing guides, company formation, documentation frameworks, and structured compliance support, visit the Nigerian Mining Resource Hub: Mining & Mineral Trading Company Setup (Nigeria)

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