The Federal Government of Nigeria has announced an increase in rates and charges for all activities in the mining sector. This development aims to raise the level of services, improve transaction traffic, and develop infrastructure within the sector. Dr. Dele Alake, the Minister of Solid Minerals Development, disclosed this during a news briefing in Abuja, expressing concerns over non-remittance by some operators despite making significant profits.
Alake highlighted that this measure is part of the efforts to implement a seven-point agenda to position the sector for economic consolidation. He mentioned that the introduction of qualitative measures, such as the new mining information system and the Electronic Mining Cadastre System (EMC+ portal), has improved transparency, application rates, and access for applicants.
The new regime includes several changes:
– Investors applying for a mining lease license will pay ₦3 million.
– Small Scale Mining Lease (SSML) applicants will pay ₦300,000 for the first two cadastral units.
– The cost to obtain an Exploration Licence (EL) is ₦600,000 for the first 100 cadastral units.
– Quarry lease and reconnaissance permit applications will attract ₦300,000.
These changes aim to discourage speculation, address the paucity of funds, and enhance the Federal Government’s capacity to improve the ease of doing business in the sector. The new rates regime affects 268 items and includes an annual service fee and costs for renewing licenses. For example, the annual service fee for the first time is ₦31,500, while the renewal rates vary depending on the type of license.
Alake also mentioned that the new regulations seek to maximize royalties from critical minerals like lithium and gold to boost the nation’s revenue base and contribute significantly to economic development. The new rates regime takes immediate effect, impacting services rendered by the Mining Cadastral Office (MCO) and the Nigerian Geological Survey Agency (NGSA).