FG Hikes Mining Industry Rates, Dues

In a move to bolster the country’s mining sector, the Federal Government of Nigeria, through the Ministry of Solid Minerals Development, has announced significant increases in dues and rates for the mining industry.

The announcement was made by the Minister of Solid Minerals Development, Dele Alake, during a press conference held at the ministry’s headquarters in Abuja on Thursday.

Minister Alake disclosed that the government has raised 286 rate regimes by 50% to 100%, effective immediately. The increase aims to improve compliance and ensure that operators contribute more effectively to the government’s revenue.

“The review was necessitated by the insufficient funds being returned to the government’s coffers by operators,” Alake stated. “This new raise will help the ministry improve the sector’s ease of doing business and ensure sustainable development.”

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Alake emphasized that the new rates were determined with input from relevant stakeholders, ensuring broad agreement and support for the changes. He highlighted that those who invest in and benefit from the mining industry should be at the forefront of supporting the government’s revenue recovery efforts, rather than shifting the burden to less privileged Nigerians.

Invoking the authority granted by the Mining and Minerals Act of 2007, Alake formed a committee comprising directors general of ministries and directors of departments under the ministry to determine the new rates. The goal was to cover the costs of the government’s investment in service infrastructures and to manage the anticipated increase in regulatory applications.

“Today, we are announcing a new regime of rates and charges for various services, departments, and agencies—a significant step in our efforts to implement the seven-point agenda to reposition the sector and enhance international competitiveness,” Alake declared.

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In addition to the rate increases, Alake warned of the potential revocation of licenses for non-compliance. He underscored the government’s commitment to enhancing the sector’s technical efficiency, improving transaction traffic, and addressing business interests through recent qualitative measures and technological capacity upgrades.

This development is part of the government’s broader strategy to revitalize the mining sector, increase foreign exchange reserves, and boost national revenue. The new rates are expected to provide the necessary financial support to achieve these goals, while also promoting a more robust and transparent mining industry in Nigeria.