The Ministry of Solid Minerals Development has recently announced a significant increase in royalties, fees, and levies for operators in the country’s minerals and mining industry. The adjustments have been implemented as part of the government’s efforts to make operations in the sector more profitable and to align with recent technological and infrastructural advancements.
At a media briefing in Abuja, the Minister of Solid Minerals Development, Dr Oladedele Alake, revealed that the previous rates were outdated and did not recognise the substantial investments made in the industry. He stressed that the new rates had been determined in consultation with all relevant stakeholders and would be 50 per cent to 100 per cent higher than before, depending on the nature of the mining operations.
The increase will impact the 268 items of mining licenses, royalties, and other fees payable by operators in the industry. Dr Alake stated that the adjustments are part of the government’s commitment to increasing revenue from solid minerals and enhancing the contribution of the mining sector to economic development.
The revised rates cover a range of fees for different permits and licenses. For example, applicants for a mining lease will now be required to pay N3 million, while the annual service fee for cadastral units will be N31,500 for the first time. Additionally, royalties fees have been significantly increased for various minerals such as baryte, coal, gold, and lead/zinc concentrate.
Dr Alake also outlined the new charges for licenses related to the manufacturing, modification, and sale of explosives, as well as permits for refining gold and operating a mineral processor. The rates review also extends to services provided by the Mining Cadastral Office (MCO) and the Nigeria Geological Survey Agency (NGSA). Detailed information on the new rates regime will be available on the Ministry’s website.
The Minister stressed that the increased rates are intended to ensure that those who are profiting from the sector are contributing fairly to the government’s efforts. He also warned that the new regulations would take immediate effect, and non-compliance could result in the revocation of licenses.
In conclusion, the Ministry’s initiatives are aimed at increasing revenue from the mining sector and enhancing economic development. While the new rates may pose challenges for some operators, they are reflective of the government’s commitment to the sustainable growth and regulation of the minerals and mining industry. As the mining sector continues to play a crucial role in the nation’s economy, it is essential to ensure that all stakeholders contribute their fair share towards its development.