Government to Reevaluate Mining License Fees in Nigeria – Statement from Minister Alake

The Ministry of Solid Minerals Development of the Federal Government has announced its intention to reassess the rates of mining licenses and other fees required from mining operators in the country.

In a statement released by Segun Tomori, the Special Assistant on Media to the Minister of Solid Minerals Development, Dele Alake, the plan to review the rates of mining licenses and other fees was brought to light. The Minister addressed stakeholders during a consultative meeting in Abuja on Thursday, emphasizing that the proposed plan would empower the government to effectively reposition the mining sector.

Highlighting the necessity of the review, the Minister underscored the government’s obligation to create a conducive environment for mining operations and generate more revenue. He sought the support of stakeholders for the anticipated increase in fees for mining licenses and other related charges.

In addition to the impending reforms, the administration is focused on cleansing the mining environment through the implementation of new mining regulations designed to safeguard legitimate miners and combat illegal mining activities.

The Minister stated, “In order for us to continue ensuring the security of the mining environment and implementing measures to alleviate the operational challenges faced by miners, we must review the rates of mining licenses and other related fees. We believed that we could not do this without informing you because, ultimately, you are the key players in the industry.”

Furthermore, the Minister assured that the government followed due process in the recent revocation of inactive mining licenses and provided a 30-day window for affected operators to seek restitution. He also announced the restitution fee for revoked dormant licenses, including those previously revoked for default in payment of annual service fees.

Dele Ayanleke, the President of the Miners Association of Nigeria, conveyed appreciation for the Minister’s commitment to the mining sector and pledged support for the ongoing reforms and the proposal to revise fees payable by operators. He urged the Minister to take into account the challenges encountered by miners and ensure that the rates remain reasonable and affordable.

As the Ministry of Solid Minerals Development initiates plans to review the rates of mining licenses in Nigeria, industry stakeholders, operators, and associations will have the opportunity to provide input and collaborate with the government in navigating the way forward for the nation’s mining sector.