Nigeria Implements 100% Increase in Mining Royalties and Charges


The federal government of Nigeria has announced a significant overhaul of its mining sector, including a 100% increase in royalties and the introduction of new charges for various mining licenses and services. Dele Alake, the Minister of Solid Minerals Development, disclosed these measures during a media briefing held in Abuja, highlighting the government’s strategy to enhance sectoral efficiency and competitiveness.

Thank you for reading this post, don't forget to subscribe!

Alake emphasized the implementation of a new regime comprising 268 items in rates and charges, aimed at leveraging recent technological and capacity upgrades to streamline transactions and infrastructure development in response to renewed business interests in the sector.

Under the new framework, applicants for mining licenses will face revised fees: Mining Lease at N3 million, Reconnaissance Permit at N300,000, Exploration License at N600,000, Small Scale Mining License at N300,000, Quarry Lease at N600,000, and Water User Permit at N300,000. Additionally, annual service fees per cadastral unit for Small-Scale Mining now stand at N31,500, Quarry Lease at N500,000, and Mining Lease at N1,250,000.

Penalties for late renewal of mineral titles have also been adjusted: Reconnaissance Permit attracts N600,000, Exploration License N1,500,000, Mining Lease N3,000,000, and Quarry Lease N1,500,000.

Regarding royalties, the government has stipulated increased rates per standard weight of minerals: Baryte at N2,100 per tonne, Coal at N3,000 per tonne, Gold at N36,436 per tonne, Lead/Zinc concentrate at N14,400 per tonne, Lithium Ore (lepidolite) at N18,000 per tonne, Lithium (kunzite) at N90,000 per tonne, and Lithium ore (spodumene) at N9,500 per tonne.

Furthermore, licensing fees for activities such as refining gold now require N5 million, while a permit to operate a Mineral Processor costs N100,000. The cost of acquiring a Mineral Resources Map of Nigeria is set at N500,000, and a Geological Map of Nigeria is priced at N300,000.

Alake highlighted the achievements of recent initiatives such as the MINDIVER project, which supported economic diversification through improved sectoral frameworks and enhanced revenue estimation systems. He underscored the positive impacts of these reforms on agencies like the mining cadastral office and the Nigerian Geological Survey Agency, which have streamlined operations and improved accessibility to geological data.

The minister concluded by affirming the government’s commitment to fiscal accountability and transparency in the mining sector, urging stakeholders to align with these reforms aimed at optimizing sectoral growth and revenue generation.

Godwin Okafor, The Naija247news
Godwin Okafor, The Naija247news
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

Share post:



More like this

FG, HarvestPlus partner to enhance Nigeria’s biofortification efforts

(first from the right) Dr Khalid Isyaku, DG NASC,...

NAFDAC shuts down bakery for using unfortified sugar, others in Sokoto

July 19, 2024. Azonuchechi Chukwu. The National Agency for Food Drugs...

Over 263 Boko Haram Terrorists Surrender to MNJTF

July 19, 2024. Azonuchechi Chukwu. The Multinational Joint Task Force (MNJTF)...

CBN directs BDCs to cap forex profits at 1.5%

July 19, 2024. Azonuchechi Chukwu. The Central Bank of Nigeria(CBN) on...
× How can I help you?