Nigerian govt targets mining licence fees to boost revenue

In a bid to boost its revenue, the federal government has announced that plans are in the pipeline to review rates of mining licenses and other sundry fees payable by operators in the country.

This is even as the FG sought the support of stakeholders in the sector in ensuring the acceptance of the new fees.

This development was announced by Dele Alake, Minister Of Solid Minerals Development during a consultative meeting with stakeholders in the mining industry in Abuja.

Alake said the review was imperative to boost the capacity of the government to effectively reposition the mining sector.

Highlighting efforts to rejig the industry, the minister said aside from ongoing reforms, the federal government was sanitising the mining environment through the newly unveiled marshals.

Alake said the mining marshals, have been conducting operations in parts of the country to protect legitimate miners and combat illegalities.

He, therefore, solicited the support of stakeholders for the impending increase in fees for mining licenses.

“This has become inevitable if the government is to effectively fulfil its obligations of providing an enabling environment for mining operations whilst also raising more revenue for the government,” the minister said.

“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.

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“We felt that we can’t just do this without letting you know because invariably, you are the players in the industry.”

On April 24, 924 dormant licences across four sectors in the mining industry were revoked by the federal government.

The areas affected include exploration, mining, small-scale mining, and quarrying.

Speaking on the recent revocation, Alake said the government followed due process and extant laws guiding the action, adding that the 30-day restitution window still exists for operators that were affected.

On his part, Obadiah Nkom, director-general of the Nigerian Mining Cadastral Office, said the committee recommended new rates that are affordable and will enhance the competitiveness of the fiscal regime of the mining sector in comparison with regional and global standards.

Nkom also chaired the fees review committee.

Dele Ayanleke, president of the Miners Association of Nigeria (MAN), who spoke on behalf of the stakeholders, commended the minister for his efforts to put the mining sector on the global front burner.

He also expressed support for the ongoing reforms and plans to review fees payable by operators, urging the minister to consider challenges faced by miners and ensure the rates are affordable.

Other stakeholders in attendance included representatives of Women In Mining (WIN), Gemstone Miners Association (GMA), and other top officials of the ministry.

By: Babajide Okeowo

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