The recent decision by the Nigerian government to increase mining rates and royalties for solid minerals has sparked significant concerns among local miners. The Miners Association of Nigeria (MAN) has publicly expressed its disapproval, citing the potential impact on indigenous miners’ ability to continue operations.
Dele Ayankele, the National President of MAN, conveyed stakeholders’ dissatisfaction with the heightened rates, emphasizing that the decision was made without prior consultation. Ayanleke raised concerns about the sector’s overall condition, particularly the imposition of multiple taxes by state governments on operators. He called upon the Federal Government to collaborate with state governments in addressing the widespread illegality within the mining sector’s regulatory and governance framework.
In addition, Professor Akinade Olatunji, President of the Nigerian Mining and Geosciences Society (NMGS), also voiced apprehensions regarding the absence of consultation with relevant stakeholders in the decision-making process. He highlighted the potential negative implications for operators already grappling with high costs and economic challenges.
Dr. Dele Alake, the Minister of Solid Minerals Development, attributed the rate and charge increases to the necessity of positioning the sector for economic consolidation and addressing non-remittance by some operators. Nonetheless, the lack of consultation and the potential adverse effects on indigenous miners have elicited valid concerns within the mining community.
Moving forward, it is imperative for the government to engage in meaningful dialogue with stakeholders to address the issues raised by the mining associations. Strengthening the regulatory framework, optimising revenue generation, and supporting indigenous miners should be prioritised to ensure the sustainable growth of the mining sector.
As the industry grapples with the challenges posed by heightened mining rates, collaborative efforts between the government and stakeholders are essential in devising a balanced approach that fosters economic growth while safeguarding the interests of local miners. Excessive rate hikes lacking proper consultation could significantly impact the mining industry and the livelihoods of indigenous miners, underscoring the necessity for a more collaborative and inclusive decision-making process.