The federal government is planning to examine the costs associated with mining permits and other various levies that mining operators around the nation must pay.
The clue was revealed by Minister of Solid Minerals Development Dele Alake at a consultative meeting in his Abuja office with mining industry stakeholders.
According to Alake, the review rates were required to increase the government’s ability to successfully realign the mining industry.
According to him, the review was unavoidable if the government was to fulfill its duties of creating an atmosphere that supports mining operations and increases tax income.
He appealed to interested parties to support the upcoming hike in mining license and other incidental fees.
“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 stated.
In shedding light on the recent revocation of inactive mining licenses, the Minister emphasized that the move was taken in accordance with existing rules and due process, and that impacted operators still have a 30-day opportunity for restitution.
The Minister declared that restitution payments for revoked inactive licenses, including those that were previously revoked for nonpayment of yearly service fees, would be N10 million, 7.5 million, 5 million, and 2.5 million for mining leases, small-scale mining licenses (SSML), exploration licenses (EL), and quarrying licenses, respectively.
The Nigerian government is implementing reforms to reposition the mining industry, including the introduction of mining marshals to protect legitimate miners and combat illegal mining.
The Director-General of the Mining Cadastral Office, Engr. Obadiah Nkom, chaired the fees review committee, which recommended affordable new rates to enhance the sector’s competitiveness with regional and global standards.
The Miners Association of Nigeria (MAN) President, Dele Ayanleke, commended the Minister for his efforts to put the mining sector on the global frontburner and expressed support for ongoing reforms and plans to review fees payable by operators.
He urged the minister to consider challenges faced by miners and ensure affordable rates.