The Ministry of Solid Minerals Development, representing the Federal Government, has formally announced its intention to reassess the charges associated with mining licenses and other payments required by mining operators throughout the nation.
During a consultative meeting with stakeholders in the mining industry in Abuja, Minister of Solid Minerals Development, Dele Alake, unveiled this plan. The purpose of the reassessment is to create a favourable environment for mining operations while simultaneously increasing government revenue.
The minister stressed the critical nature of the reassessment for the efficient repositioning of the mining sector. He urged the stakeholders to support the impending raise in fees for mining licenses and various other charges.
In addition to the reassessment of fees, the minister highlighted the government’s initiatives to reform the mining industry. This includes the deployment of newly established mining marshals to safeguard legitimate miners and crack down on illegal mining activities.
The Ministry of Solid Minerals Development has also been revoking inactive mining licenses, following established laws and procedures, with a 30-day restitution period for affected operators.
The new restitution fee for revoked inactive licenses includes a charge of N10 million for mining licenses, N7.5 million for small-scale mining licenses, N5 million for exploration licenses, and N2.5 million for quarrying licenses, including those previously revoked due to non-payment of annual service fees.
The Fees Review Committee, led by the Director-General of the Mining Cadastral Office, Obadiah Nkom, put forward new rates aimed at enhancing the competitiveness of the fiscal regime in the mining sector, relative to regional and global standards.
The President of the Miners Association of Nigeria, Dele Ayanleke, conveyed gratitude for the government’s efforts to elevate the mining sector on the global stage, representing the stakeholders. He expressed support for the ongoing reforms and emphasized the necessity for reasonable rates given the challenges encountered by miners.
The consultative meeting was also attended by representatives of Women In Mining, the Gemstone Miners Association, and senior officials from the Ministry of Solid Minerals Development.
The proposed reassessment has generated discussions and expectations within the mining industry, with stakeholders anticipating a balanced approach that considers both the government’s revenue objectives and the practical realities faced by mining operators.