The Minister of Solid Minerals Development, Dele Alake, says that investors applying for a Mining Lease license would pay N3 million, while Small Scale Mining Lease (SSML) applicants will pay N300,000 for the first two cadastral units.
The Minister also said : “The cost to obtain an Exploration Licence (EL) is N600,000 for the first 100 cadastral units; a Quarry Lease now attracts N300,000, while reconnaissance permit is N300,000.”
In a statement, Alake explained that the new regulations, introduced in consultation with industry stakeholders, aim to discourage speculation and address the paucity of funds, limiting the federal government’s capacity to improve the ease of doing business in the sector.
He added that the new rates, which affect 268 items in the industry, include an annual service fee of N31,500 for the first time, N260,000 for a Small Scale Mining Licence (SSML), N500,000 for a quarry lease, and N1,250,000 for firms operating with a Mining Lease.
Following the renewal of licences, the rates for the respective categories will be N42,000 for an exploration licence, N420,000 for a Small Scale Mining Lease (SSML), N1,500,000 for a Mining Lease, and N1,100,000 for a Quarry Lease.
Other services affected by the new regulations include mineral title applications of the Mining Cadastral Office (MCO), alongside the transfer, enlargement, surrender, and consolidation of mineral titles.”
Alake added that the new regulations seek to maximise royalties from critical minerals like lithium and gold to boost the country’s revenue base and contribute significantly to economic development.