The federal government has increased the rates and charges across all activities within the mining sector.
Dele Alake, the Minister of Solid Minerals Development, made these revelations while addressing journalists on the revised charges in Abuja. He expressed concerns regarding the failure of some operators to remit funds.
Alake highlighted that operators in the mining industry are generating substantial revenue but are not fulfilling their tax obligations to the government.
“We are taking a significant step in implementing the seven-point agenda today. This move is aimed at positioning the sector for economic consolidation by introducing a new framework of rates and charges for the various services offered by the ministry’s departments and agencies.”
The Minister mentioned that this initiative was prompted by the recent implementation of qualitative measures. He emphasized that it would enhance service quality, increase transaction flow, and promote infrastructure development.
“For instance, we oversaw the successful execution and completion of the mineral sector support for economic diversification mind diver project.”
Alake noted that the mining sector includes the Mining Cadastral Office (MCO), which is responsible for licensing. The MCO has adopted a new mining information system, Electronic Mining Cadastre System, EMC+ portal.
This system allows for a 24-hour application and administration process, expediting applications and access for individuals to the MCO. Alake highlighted that the system has enhanced transparency.
He also mentioned that the system would stimulate more interest and enhance participation in the sector, instilling confidence among stakeholders to invest in the industry.
Alake stated that the Nigerian Geological Survey Agency (NGSA) has developed an integrated base of data accessible to the public.
“Stakeholders have been benefiting from the mining sector; hence, it is only fair that those profiting from investments in the sector should contribute to the government’s efforts to recover funds rather than transferring the burden to less privileged Nigerians.”
Alake revealed that there are approximately 268 items in the revised rate structure, making it impractical to list all of them.
“Key highlights include: investors applying for a mining lease license will be required to pay N3 million, while Small Scale Mining Lease (SSML) applicants will pay N300,000 for the first two cadastral units.”
The costs for obtaining an Exploration License (EL) stand at N600,000 for the first 100 cadastral units.
Other charges include those for a Quarry Lease and reconnaissance permit, which amount to N300,000.
The purpose of these rates is to deter speculation and address the lack of funds, which hinders the government’s ability to enhance the ease of doing business in the sector.
The revised rates impact 268 items within the industry, including an annual service fee of N31,500 for the first time.
Additionally, N260,000 is required for a Small Scale Mining License (SSML), N500,000 for a Quarry Lease, and N1,250,000 for firms operating under a Mining Lease.
Upon license renewal, the rates for the respective categories will be N42,000.
Alake also outlined rates for an exploration license: N420,000 for SSML, N1.5 million for a Mining Lease, and N1 million for a Quarry Lease.
The new regulations also cover mineral title applications by the MCO, as well as the transfer, enlargement, surrender, and consolidation of mineral titles.
Alake emphasized that the revised rates aim to maximize royalties from critical minerals like lithium and gold to boost the nation’s revenue and contribute significantly to economic growth.
Under the new rate structure, lithium ore lepidolite, valued at 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 revised rates also impact services provided by the MCO and the NGSA.
Alake confirmed that the new rate structure takes immediate effect.
