The Nigerian government has recently announced an increase in the rates and charges for all activities in the mining sector. This initiative is aimed at maximizing royalties from critical minerals like lithium and gold to boost the nation’s revenue base and contribute significantly to economic development.
During a briefing held on Thursday in Abuja, the Minister of Solid Minerals Development, Dele Alake, disclosed the new charges and expressed concerns over non-remittance by some operators in the industry. According to Mr. Alake, mining operators have been making substantial profits but have failed to remit the appropriate taxes to the federal government.
The minister highlighted that the introduction of a new regime of rates and charges for various services of the department and agencies of the ministry is in line with the government’s efforts to implement the seven-point agenda. He also emphasized that the new measures are intended to improve transaction traffic, develop infrastructure, and position the sector for economic consolidation.
One of the major changes implemented is the introduction of the Electronic Mining Cadastre System, a 24-hour application and administration system, which aims to improve transparency and encourage more interest and boost participation in the sector.
The new rates regime includes an array of charges for different services in the industry, with the goal of discouraging speculation, addressing the paucity of funds, and improving the ease of doing business in the sector. These changes will affect a total of 268 items in the industry and will have an immediate effect on those involved in mining operations.
For instance, under the new regime, investors applying for a mining lease license will now be required to pay £7,500, while Small Scale Mining Lease (SSML) applicants will pay £750 for the first two cadastral units. Additionally, the cost to obtain an Exploration Licence (EL) is set at £1,500 for the first 100 cadastral units. The rates for annual service fees, license renewals, and mineral title applications have also been revised accordingly.
The updated charges also include the introduction of royalties for different minerals based on their current market value. For example, lithium ore lepidolite at the current market value of £1,800 per tonne will attract an £54 royalty per tonne, while kunzite with a current market value of £9,000 per tonne will attract a £270 royalty per tonne.
The minister also stressed that the Nigerian Geological Survey Agency (NGSA) has acquired an integrated base of data accessible by the public, further enhancing transparency in the sector.
The new measures are indeed a significant step towards ensuring that those who invest in the mining sector and make profits from it contribute their fair share to the government’s efforts to recoup and improve the nation’s revenue base.
In conclusion, the implementation of the new rates and charges in the mining sector is a proactive measure by the Nigerian government to boost the economy, improve transparency, and ensure that stakeholders in the sector contribute equitably to the nation’s economic development. These changes are indeed instrumental in enhancing the nation’s revenue base and creating an environment that encourages further investment in the mining sector for sustainable economic growth.