The Federal Government has increased rates and charges for all activities in the mining sector.
The Minister of Solid Minerals Development, Dele Alake, announced the new charges on Thursday in Abuja, expressing concerns over some operators not paying their dues to the government.
Alake said, “Mining operators in the industry are making huge amounts of money but refuse to remit them to the Federal Government.”
He emphasized the importance of this change, saying, “Today, we are taking a major step in the efforts to implement the seven-point agenda. This is to position the sector for economic consolidation by announcing a new regime of rates and charges for various services of the department and agencies of the ministry.”
The new charges come as part of qualitative measures aimed at improving the mining sector. Alake said these measures would raise service levels, increase transaction traffic, and develop infrastructure. He highlighted the successful implementation and conclusion of the mineral sector support for the economic diversification project, known as the MinDiver project.
The new system involves the Mining Cadastral Office, which handles licensing. Alake said, “The MCO has acquired a new mining information system, the Electronic Mining Cadastre System, and the EMC+ portal. This enables a 24-hour application and administration system that accelerated the rate of application and access of applicants to MCO, adding that the system had improved transparency.”
He also mentioned that the Nigerian Geological Survey Agency had acquired integrated base data accessible to the public. This new system aims to encourage more interest and participation in the sector, giving stakeholders confidence to invest.
“The stakeholders have been enjoying the mining sector; it is therefore equitable that those who invest in the mining sector and make profits from it should be on the front lines of the government’s efforts to recoup rather than pass it on to poor Nigerians,” Alake said.
There are about 268 items in the new rate regime. For example, investors applying for a mining lease license will pay N3 million, while Small Scale Mining Lease (SSML) applicants will pay N300,000 for the first two cadastral units. The cost to obtain an Exploration Licence (EL) is N600,000 for the first 100 cadastral units. Other fees include N300,000 for a quarry lease and reconnaissance permit.
Alake explained that the new rates are designed to discourage speculation and address the lack of funds limiting the government’s ability to improve the ease of doing business in the sector. The new rates include an annual service fee of N31,500 for the first time, N260,000 for a Small Scale Mining License (SSML), N500,000 for a Quarry Lease, and N1,250,000 for firms operating with a Mining Lease. License renewal rates will be N42,000.
Exploration licenses will cost N420,000, SSMLs N1.5 million, and quarry leases N1 million. Other services affected by the new regulations include mineral title applications to the MCO, along with the transfer, enlargement, surrender, and consolidation of mineral titles.
The new regulations aim to maximize royalties from critical minerals like lithium and gold, boosting the nation’s revenue and contributing significantly to economic development. For instance, lithium ore lepidolite, with a current market value of N600,000 per tonne, attracts an N18,000 royalty per tonne.
Kunzite, valued at N3 million per tonne, attracts a N90,000 royalty per tonne, and lithium ore spodumene, valued at N316,667 per tonne, attracts a N9,500 royalty per tonne.
The rate review also affects services rendered by the MCO and the NGSA. According to the minister, the new rate regime takes immediate effect.
