The Federal Ministry of Solid Minerals Development has unveiled a new rates regime for the mining sector, aimed at enhancing business operations and supporting ongoing reforms.
Announced by the Minister of Solid Minerals Development, Dr. Dele Alake, at a press conference today, the new rates reflect the government’s commitment to increasing revenue and bolstering mining’s role in economic development
Under the new structure, a Mining Lease license will now cost N3 million, while Small Scale Mining Lease applicants will pay N300,000 for the first two cadastral units. Exploration Licenses will cost N600,000 for the first 100 units, and Quarry leases and reconnaissance permits will both be N300,000.
The rates adjustment, affecting 268 industry items, also includes an annual service fee structure, with Small Scale Mining Licenses at N260,000, Quarry Leases at N500,000, and Mining Leases at N1,250,000.
These changes aim to discourage speculation, improve ease of doing business, and address funding shortages that have hindered sector growth.
Additionally, the new regime sets specific royalties for critical minerals like lithium, which is expected to significantly boost national revenue.
The new rates are effective immediately, with full details available on the Ministry’s website, www.msmd.gov.ng.
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