On Saturday, the Nigerian government announced a new set of rates for the mining sector, aimed at boosting revenue and making it easier for businesses to operate.
According to Arise TV report, the Ministry of Solid Minerals Development, led by Dr. Dele Alake, introduced these changes as part of a broader reform strategy to strengthen the sector’s contribution to the national economy.
“The new rates underscore our commitment to increasing revenue from solid minerals and enhancing service delivery,” Dr. Alake said during a press conference. “These changes are designed to foster a more efficient business environment and promote economic development.”
Under the new regime, the fee for a Mining Lease licence has been set at N3 million. Small Scale Mining Lease (SSML) applicants will now pay N300,000 for the first two cadastral units. Additionally, securing an Exploration Licence (EL) will cost N600,000 for the first 100 cadastral units. Quarry leases and reconnaissance permits will both require a payment of N300,000.
These rates were developed in collaboration with industry stakeholders to curb speculation and address financial constraints that have hindered the government’s ability to improve business operations in the sector.
The adjustments, impacting 268 items in the industry, introduce an annual service fee of N31,500 for the first time. Small Scale Mining License (SSML) fees are set at N260,000, while Quarry Lease holders will pay N500,000. Companies operating under a Mining Lease will face a fee of N1,250,000.
For renewals, the rates are N42,000 for Exploration Licences, N420,000 for SSMLs, N1,500,000 for Mining Leases, and N1,100,000 for Quarry Leases.
The new regulations also affect services provided by the Mining Cadastral Office (MCO), including the application, transfer, enlargement, surrender, and consolidation of mineral titles.
Dr. Alake highlighted the government's goal to maximize royalties from critical minerals like lithium and gold to boost the national revenue base. For example, lithium ore (Lepidolite) now incurs an N18,000 royalty per tonne, while lithium (Kunzite) and lithium ore (Spodumene) attract royalties of N90,000 and N9,500 per tonne, respectively.
The revised rates and detailed information will be published on the ministry's website. Dr. Alake confirmed that these changes are effective immediately, marking a significant step in Nigeria’s efforts to reform and invigorate its mining sector.