Nigeria Aims to Increase Revenue Through Mining License Fees Review
The federal government of Nigeria has formally expressed its intention to conduct a review of mining license rates and other associated fees with the aim of bolstering its revenue generation. Additionally, the government is actively seeking the collaboration and support of stakeholders within the mining sector to facilitate the implementation of the proposed fee adjustments.
The announcement of the proposed review was made by the Honourable Minister of Solid Minerals Development, Mr. Dele Alake, during a consultative meeting with key stakeholders in the mining industry held in Abuja. Mr. Alake underscored the necessity of the review to enhance the government’s capacity to effectively reposition the mining sector. He also highlighted the ongoing efforts being made to cleanse the mining environment through the deployment of mining marshals, charged with safeguarding legitimate miners and combating illicit activities.
The minister emphasised the unavoidable nature of the fee increase for mining licenses as a means of fostering a conducive operational environment for mining activities and augmenting government revenue. He also acknowledged the significance of soliciting input from industry participants during this process.
Furthermore, the federal government recently revoked 924 dormant licenses across various subsectors within the mining industry, including exploration, mining, small-scale mining, and quarrying. Mr. Alake affirmed that the revocation was executed with rigorous adherence to due process and applicable laws, and affected operators are provided with a 30-day window for restitution.
The Director-General of the Nigerian Mining Cadastral Office, Mr. Obadiah Nkom, conveyed that the committee has put forth recommended new rates that are financially feasible and will enhance the competitiveness of the fiscal regime within the mining sector in comparison with regional and global standards.
Mr. Dele Ayanleke, president of the Miners Association of Nigeria (MAN), conveyed gratitude for the minister’s efforts in advancing the mining sector and pledged the association’s backing for the ongoing reforms and the impending fee review. Additionally, representatives from Women In Mining (WIN), Gemstone Miners Association (GMA), and other officials from the ministry were also in attendance at the meeting.
In summation, the Nigerian government’s proposed review of mining license fees is targeted at fortifying revenue generation and fortifying the mining sector. Through the solicitation of input and support from stakeholders, the government aims to ensure that the revised fees are affordable and contribute to the growth and sustainability of the industry. This initiative represents a component of the government’s broader endeavours to reform and invigorate the mining sector, underscoring the critical importance of collaborative efforts among all stakeholders to achieve these objectives.
