Nigeria’s Plan to Adjust Mining Licence Rates
The recent announcement by the Nigerian Government regarding its intention to revise the rates of mining licenses and other fees paid by operators in the mining industry has underscored the significance of repositioning the sector. During a meeting with stakeholders in the mining sector, the Minister of Solid Minerals Development, Dr. Dele Alake, emphasized the crucial need to boost the government’s capacity in effectively repositioning the mining industry.
In addition to the ongoing reforms, the federal government has also taken steps to clean up the mining environment by deploying newly unveiled mining marshals. These marshals have been assigned the responsibility of safeguarding legitimate miners and cracking down on illegal mining activities in different parts of the country.
Dr. Alake underscored the importance of stakeholders’ support for the planned increase in fees, citing it as necessary to ensure an enabling environment for mining operations and to generate more revenue for the government.
With regards to the recent revocation of dormant mining licenses, the Minister assured that the government followed due process and existing laws, and there is still a 30-day window for affected operators to seek restitution. The restitution fees for revoked dormant licenses have been set at N10 million for Mining Leases, 75 million naira for Small Scale Mining Licenses (SSML), and 2.5 million naira for Exploration License (EL) and Quarrying License.
The Director-General of the Mining Cadastral Office, Engr. Obadiah Nkom, who chaired the fees review committee, explained that the recommended rates are affordable and will enhance the competitiveness of the fiscal regime in the mining sector when compared to regional and global standards.
The President of the Miners Association of Nigeria (MAN), Dele Ayanleke, expressed support for the ongoing reforms and the proposed review of fees. He also urged the Minister to consider the challenges faced by miners and ensure that the new rates remain affordable.
The meeting was attended by representatives of various mining associations, top officials of the ministry, and other stakeholders, demonstrating the widespread interest in the proposed revisions to the mining license rates.
As the Nigerian Government aims to strengthen the mining sector and generate more revenue, the proposed review of mining license rates and other fees reflects a concerted effort to create a conducive environment for mining operations in the country. It is imperative for all stakeholders to engage constructively in the upcoming changes, which are intended to benefit the industry as a whole.
