Nigerian Government Considers raising Fees for Mining Licences to Boost Revenue

The federal government of Nigeria has announced its intention to reevaluate the rates of mining licenses and associated fees paid by operators in the nation. Dele Alake, the Minister of Solid Minerals Development, made this announcement during a consultative meeting with stakeholders in the mining sector in Abuja.

Minister Alake highlighted the necessity of this review in order to enhance the government’s capacity to effectively restructure the mining industry. He also emphasized the government’s efforts to clean up the mining environment through the introduction of mining marshals, who have been conducting operations in various parts of the country to protect legitimate miners and combat illegal activities.

With the impending increase in fees for mining licenses, Alake called for the support of stakeholders, stressing the importance of the increase in fees to create a conducive environment for mining operations and generate more revenue for the government. The Minister recognized the crucial role of industry players in the sector and emphasized the need to involve them in the decision-making process.

The federal government recently revoked 924 dormant licenses in four sectors of the mining industry, including exploration, mining, small-scale mining, and quarrying. Minister Alake stated that the government followed established laws and procedures and noted that a 30-day window exists for affected operators to seek restitution.

Obadiah Nkom, the director-general of the Nigerian Mining Cadastral Office, disclosed that the committee has proposed new rates that are both reasonable and will enhance the competitiveness of the fiscal regime compared to regional and global standards. Nkom, who chaired the fees review committee, emphasized the importance of striking a balance between affordability and competitiveness.

Dele Ayanleke, the president of the Miners Association of Nigeria (MAN), expressed the association’s support for the ongoing reforms and the proposed review of fees, while urging the Minister to address the challenges faced by miners and ensure that the rates remain affordable.

Representatives from Women In Mining (WIN), Gemstone Miners Association (GMA), and other high-ranking officials from the ministry were also present at the meeting. Their presence underscores the significance of the proposed reforms for the various stakeholders in the mining industry.

The move to review mining license fees and other related charges is part of a wider effort by the Nigerian government to revitalize the mining sector, streamline operations, and boost revenue generation. As the government seeks to move forward with its reform agenda, it is imperative to strike a balance between facilitating a conducive environment for miners and ensuring a fair and competitive fiscal regime. This collaborative approach involving industry stakeholders will be crucial in achieving the desired outcome.