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Federal Government reviews mining rates to boost sector reforms, revenue

Dr. Oladele Alake, Honourable Minister for Solid Minerals Development

*Dr. Oladele Alake, Minister for Solid Minerals Development, discloses the mining lease licence is now N3 million with more royalties from critical minerals, such as lithium and gold, to boost Nigeria’s revenue base, contribute to economic development

Isola Moses | ConsumerConnect

The Federal Government of Nigeria has announced a regime new rates for the mining sector to enhance Ease of Doing Business (EoDB), and consolidate ongoing reforms in the economy.

ConsumerConnect reports Dr. Oladele Alake, Honourable Minister for Solid Minerals Development, who disclosed this development at a press conference, in Abuja, FCT, stated that the review underscores the Federal Government’s commitment to increasing revenue from solid minerals to enhance service delivery and boost the contribution of the mining industry to economic development.

Alake noted that in the new regime, investors applying for a Mining Lease licence would pay N3 million, while Small Scale Mining Lease (SSML) applicants would pay N300,000 for the first two cadastral units.

The Minister also explained the cost to obtain an Exploration Licence (EL) is N600,000 for the first 100 cadastral units.

A Quarry lease now attracts N300,000, while reconnaissance permit is N300,000, he noted.

According to Alake, the new regulations, introduced in consultation with industry stakeholders, aim to discourage speculation and address the paucity of funds, limiting the Federal Government’s capacity to improve Ease of Doing Business in the sector.

He further revealed the new rates, which affect 268 items in the industry, include an annual service fee of N31,500 for the first time, N260,000 for a Small Scale Mining Licence (SSML), N500,000 for a Quarry Lease, and N1,250,000 for firms operating with a Mining Lease.

The Minister said following the renewal of licences, the rates for the respective categories would be N42,000 for an Exploration Licence, N420,000 for a Small Scale Mining Lease (SSML), N1,500,000 for a Mining Lease, and N1,100,000 for a Quarry Lease.

Other services affected by the new regulations include mineral title applications of the Mining Cadastral Office (MCO), alongside the transfer, enlargement, surrender, and consolidation of mineral titles.

The new regulations seek to maximise royalties from critical minerals like lithium and gold to boost the nation’s revenue base and contribute significantly to economic development.

In the new rates regime, he stated, Lithium ore (Lepidolite) at the current market value of N600,000 per tonne attracts an N18,000 royalty per tonne; lithium (Kunzite) with a current market value of N3 million per tonne attracts a N90,000 royalty per tonne, while lithium ore (Spodumene) with a current market value of N316,667 per tonne attracts a N9,500 royalty per tonne.

The government as well revealed the rates review also affects services rendered by the Mining Cadastral Office (MCO) and the Nigeria Geological Survey Agency (NGSA).

The Minister stated the comprehensive details of the new rates regime would be available on the Ministry’s Web  site, www.msmd.gov.ng.

The new rates regime takes immediate effect, said Dr. Alake.

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