The Nigerian federal government has significantly increased the costs associated with mining licenses and royalties:
– **Mining Lease**: N3 million
– **Reconnaissance Permit**: N300,000
– **Exploration Licence**: N600,000
– **Small Scale Mining License**: N300,000
– **Quarry Lease**: N600,000
– **Water User Permit**: N300,000
– **Annual Service Fee**: N31,500 per Cadastral Unit
The Solid Minerals Development Minister, Dele Alake, announced these changes during a media briefing in Abuja, explaining that the new pricing regime includes a total of 268 elements but highlighted the key increases only. The royalties on mineral extraction have also been raised by 100%, reflecting the increased market values of various minerals.
Additionally, penalties for late title renewals have been established:
– **Reconnaissance Permit**: N600,000
– **Exploration License**: N1.5 million
– **Mining Lease**: N3 million
– **Quarry Lease**: N1.5 million
Further, permits to operate within the mining sector have adjusted costs:
– **Explosives Production License**: N20 million
– **Explosives Alteration License**: N10 million
– **Explosives Sales Permit**: N500,000
– **Mineral Processing Permit**: N100,000
– **Gold Refining License**: N5 million
– **Geological Map of Nigeria**: N300,000
– **Mineral Resources Map**: N500,000
These adjustments are part of the government’s strategy to enhance the mining sector through improved technical and operational efficiency, as articulated by Minister Alake.
In related news, the federal government has exempted manufacturers, farmers, and small businesses from withholding tax to alleviate their tax burden, along with implementing lower rates for businesses with narrow profit margins and measures against tax evasion.