The Federal Government has carried out an upward review of charges for all mining sector activities.
Minister of Solid Minerals Development, Dele Alake disclosed this at a press briefing in Abuja.
He said the increase was due to the introduction of qualitative measures recently implemented, and that it would enhance service levels, increase transaction traffic, and improve infrastructure development.
Alake expressed concerns about non-remittance by some operators, stating that while mining operators are generating substantial profits, they have failed to remit these earnings to the Federal Government.
The minister stated that the new system would encourage greater interest and boost participation in the sector, thereby giving stakeholders confidence to invest. He further stated that the Nigerian Geological Survey Agency (NGSA) had acquired integrated base data that is accessible to the public.
The minister however did not mention the individual activities and their rates noting that there are approximately 268 items in the rates regime, making it difficult to mention each one.
He said, “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 to poor Nigerians.”
“The cost to obtain an Exploration Licence (EL) is N600,000 for the first 100 cadastral units.’’
“The aim is to discourage speculation and address the paucity of funds, limiting the Federal Government’s capacity to improve ease of doing business in the sector.”
“The new rate, which affects 268 items in the industry, includes an annual service fee of N31,500 for the first time.
“Also, 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. Following the renewal of licenses, the rates for the respective categories will be N42,000,” the minister added.
According to him, under the new rates regime, lithium ore lepidolite, with a current market value of N600,000 per tonne, attracts a royalty of N18,000 per tonne.
The minister further stated that Kunzite, valued at N3 million per tonne, attracts a royalty of N90,000 per tonne, while lithium ore spodumene, valued at N316,667 per tonne, attracts a royalty of N9,500 per tonne.
He also noted that the rates review affects services provided by the Mining Cadastre Office (MCO) and the Nigerian Geological Survey Agency (NGSA). According to Alake, the new rates regime takes immediate effect.
