The Ministry of Solid Minerals Development has issued updated rates aimed at enhancing the mining sector’s operational efficiency and supporting ongoing reforms.
At a press conference, Dr. Dele Alake, Minister of Solid Minerals Development, emphasised that these adjustments indicate the government’s commitment to boosting revenue from solid minerals.
According to the government, the new rates aim to streamline processes, facilitate business operations, and boost economic contributions from mining activities.
Segun Tomori, Special Assistant on Media to the Minister, conveyed this in an official press release.
Key changes include a fee of N3 million for Mining Lease license applications and N300,000 for Small Scale Mining Lease (SSML) applicants per cadastral unit. Exploration Licences (EL) now cost N600,000 for the first 100 cadastral units, while Quarry leases and reconnaissance permits are set at N300,000 each.
Developed in consultation with industry stakeholders, these new regulations are designed to curb speculation and address funding shortages that hinder the government’s efforts to improve the business environment in the sector.
The updated rates affect 268 industry items, introducing annual service fees of N31,500 for initial times, N260,000 for SSML, N500,000 for Quarry Leases, and N1,250,000 for Mining Leases. Renewal prices are N42,000 for Exploration Licences, N420,000 for SSML, N1,500,000 for Mining Leases, and N1,100,000 for Quarry Leases.
Additionally, the revisions impact Mineral Cadastral Office (MCO) services, encompassing applications, transfers, expansions, surrenders, and consolidations of mineral titles.
Dr. Alake stressed that the revised regulations aim to maximise royalties from critical minerals such as lithium and gold, bolstering national revenues and advancing economic growth.
Under the new regime, royalties per tonne for lithium ores are set at N18,000 for Lepidolite, N90,000 for Kunzite, and N9,500 for Spodumene, reflecting current market values.
The services provided by the MCO and the Nigeria Geological Survey Agency (NGSA) are equally impacted by these changes. The details of the updated rates are accessible on the Ministry’s website, www.msmd.gov.ng. Dr. Alake confirmed that the new rates are effective immediately.
