The Miners Association of Nigeria (MAN) is asking the Nigerian government to reduce the new, higher costs for mining licenses and royalties.
These costs were recently increased by 100 percent.
Dele Ayanleke, the president of the Miners Association, spoke during an online event called “Leveraging the African Mining Vision for Nigeria’s Mining Industry Transformation.”
This event was organised by the Nigeria Economic Summit Group (NESG) to prepare for the 30th Economic Summit, which will happen from October 16 to 18, 2024.
What Happened?
On July 4, 2024, Dele Alake, the minister of solid minerals development, announced that the prices for 268 items related to mining had been increased.
Here are some examples of the new prices:
- Mining lease: N3 million
- Reconnaissance permit: N300,000
- Exploration license: N600,000
- Small scale mining license: N300,000
- Quarry lease: N600,000
- Water user permit: N300,000
Why Are Miners Concerned?
Ayanleke is worried that these higher costs will scare away serious investors who want to mine in Nigeria.
He explained that while the government called this a “review,” none of the fees were lowered—they were all raised, and by a lot!
Some of the increases are as much as 10,000 percent higher than before.
The Impact
If these new, higher fees stay in place, Ayanleke believes that fewer investors will be interested in mining in Nigeria, which could hurt the industry.
What’s Next?
Mansur Ahmed, the co-chair of NESG, agrees that the mining sector in Nigeria needs some changes.
He said that even though the government has been trying to improve mining in Nigeria since 2005, the industry still has not reached its full potential.
Ahmed is calling for new policies to help the mining industry grow and succeed.
