The Ministry of Solid Minerals Development has introduced new rates for mining licenses to enhance ease of doing business and support ongoing reforms.
Minister Dele Alake announced that the new rates reflect the federal government’s commitment to increasing revenue from solid minerals, improving service delivery, and strengthening the mining sector’s role in economic development.
Under the new system, a Mining Lease license will cost N3 million, while a Small Scale Mining Lease (SSML) will cost N300,000 for the first two cadastral units.
Additional changes include an Exploration Licence (EL) now costing N600,000 for the first 100 cadastral units, a Quarry Lease at N300,000, and a reconnaissance permit also at N300,000.
These new regulations were developed in consultation with industry stakeholders to discourage speculation and address funding shortages, which have hindered the federal government’s ability to improve business conditions in the sector.
The regulations cover 268 items, including an annual service fee of N31,500 for the first time and varying fees for different types of mining licenses.
Minister Alake emphasized that the new rates will maximize royalties from valuable minerals like lithium and gold, significantly boosting the country’s revenue and economic development.
The updated rates include N42,000 for an exploration license renewal, N420,000 for a Small Scale Mining Lease renewal, N1,500,000 for a Mining Lease renewal, and N1,100,000 for a Quarry Lease renewal.
The regulations also impact various mineral title applications handled by the Mining Cadastral Office (MCO), ensuring a more streamlined and financially beneficial mining sector.