The Federal Government of Nigeria has decided to increase rates and charges for various mining items in order to enhance the quality of services provided by the Ministry of Solid Minerals Development. The announcement was made by the Minister of Solid Minerals Development, Dr. Dele Alake, during a press briefing in Abuja.
The objective of the rate increases is to implement the seven-point agenda outlined by the government, with the vision of positioning the mining sector for economic consolidation and international competitiveness. The adjustments have been made to reflect the improvements in technical efficiency, infrastructure, and service capacities that have been enacted in recent times.
Dr. Alake highlighted various advancements, such as the implementation of a new mining information system by the mining cadastral office, which has provided applicants with a 24-hour application and administration system. Additionally, the Nigerian Geological Survey Agency has made an integrated geological database accessible to the public, making it easier for companies to work on exploration projects. The improvements have been made in collaboration with the World Bank through the miniver project, which has set forth a transparent framework for the solid minerals development fund.
The decision to increase the rates and charges stems from the belief that those who profit from Nigeria’s mining sector should contribute towards the government’s efforts to recoup its investments in the industry. The new rates have been determined by the Ministry in accordance with the Mining and Minerals Act of 2007, and have been carefully designed to reflect the cost of new service infrastructures and meet the expected surge in applicant traffic.
Some of the newly revised rates include mining lease fees of N3 million, annual service fees for small-scale mining, quarry lease, and exploration licenses ranging from N260,000 to N600,000. Moreover, the royalties for various minerals, such as coal, gold, and lithium ore, have been significantly adjusted based on their current market values.
In addition to the rate increases, the Ministry has also set new costs for licenses and permits related to mining activities. For instance, obtaining a license to refine gold will now cost N5 million, and a permit to operate a mineral processor has been set at N100,000.
Dr. Alake emphasized that prior to implementing the new rates, the Ministry conducted a stakeholder’s summit to inform the public about the impending changes and reforms. The intention is to ensure that all stakeholders in the mining sector are aware of the adjustments and can prepare for the new fee structures.
In conclusion, the Government’s decision to increase mining fees and royalties is a strategic move towards enhancing the mining sector’s contribution to the economy. These adjustments are expected to enable the Ministry to provide improved services and support to applicants while ensuring that stakeholders in the mining industry contribute fairly to the nation’s economic growth.