FG Proposes Adjustment To Mining License Rates In Nigeria

FG has proposed an adjustment to mining license rates in Nigeria.

NewsOnline Nigeria reports that President Bola Tinubu’s government, via the Ministry of Solid Minerals Development, has announced plans to review the rates of mining licenses in the country.

The Minister of Solid Minerals Development, Dele Alake, confirmed this on Thursday during a consultative meeting with stakeholders in the mining industry in Abuja.

Alake said the plan will also enhance the government’s ability to effectively restructure the mining sector, and called on stakeholders to support the planned increase in mining license and other fees.

The minister highlighted the government’s efforts to restructure the industry, pointing out that apart from ongoing reforms, the government is cleaning up the mining landscape through the newly established mining marshals who, he said, are operating in some areas to safeguard legitimate miners and fight against illegal mining.

Alake, in a statement signed by his special assistant on media, Segun Tomori, said, “For us to continue to ensure that we secure the mining environment and keep putting in place measures that will ease the operational difficulties and challenges that confront miners, we need to review the rates of mining licenses and other sundry fees.

“We felt that we can’t just do this without letting you know because invariably, you are the players in the industry.”

The Minister said that the recent cancellation of dormant mining licenses was done in accordance with due process and existing legislation guiding the action, adding that there is still a 30-day period for the affected operators to pay the restitution fee.

The Minister had previously announced an N10m, ₦7.5 million, ₦5m and ₦2.5m restitution fees for the Mining Leases, small-scale mining licenses, exploration license and quarrying license revoked dormant licenses, including those previously revoked for failure to pay annual service fees.

On his part, the Director-General of the Mining Cadastral Office, Engr. Obadiah Nkom, who doubles as chairman of the fees review committee, stated that the committee recommends new rates that are reasonable and will improve the fiscal position of the mining sector compared to regional and international standards.

Speaking on behalf of the stakeholders, the President of the Miners Association of Nigeria, Dele Ayanleke, commended the Minister for his efforts to put the mining sector on the global front burner, expressing support for ongoing reforms and plans to review fees payable by operators.

He urged the minister to consider the challenges faced by miners and ensure the rates are affordable.

Other stakeholders in attendance include Representatives of Women In Mining, the Gemstone Miners Association, and top ministry officials.