FG Announces New Mining Rates

The federal government has announced a new rate for investors interested in mining mineral resources across the country.

Minister of Soldi Mineral, Dele Alake who disclosed this on Thursday said the new mining rate was in line with President Bola Tinubu’s policy on ease of doing business.

In the new mining rate, investors applying for a Mining Lease license will now pay ₦3 million, while Small Scale Mining Lease (SSML) applicants will be required to pay ₦300,000 for the first two cadastral units.

Under the new rate, to get an Exploration Licence (EL) will be ₦600,000 for the first 100 cadastral units. A Quarry lease will now attract ₦300,000, and a reconnaissance permit will be set at ₦300,000.

Mr Alake said the “new regulations, developed in consultation with industry stakeholders, aim to discourage speculation and address the lack of funds that have been limiting the federal government’s capacity to improve the ease of doing business in the sector.”

Mr Oladele added that other services impacted by the new regulations include “mineral title applications of the Mining Cadastral Office (MCO), as well as the transfer, enlargement, surrender, and consolidation of mineral titles.”

He said the new rate would help the federal government maximize royalties from critical minerals such as lithium. He added that with the new mining rates, there would be a boost to the country’s revenue base.

The Minister of Solid Mineral added that new mining rates also impacted services provided by the Mining Cadastral Office (MCO) and Nigeria Geological Survey Agency (NGSA). He added that the new rate would significantly contribute to the economic development of the country.

“I believe these new regulations will help maximize royalties from critical minerals such as lithium and gold, boosting the nation’s revenue base and significantly contributing to economic development.

“These rate revisions also impact services provided by the Mining Cadastral Office (MCO) and the Nigeria Geological Survey Agency (NGSA),” Mr Alake said.