FG increases mining rate by 50 percent to strengthen ease of doing business

The Ministry of Solid Minerals Development, for ease of doing business in the sector, has raised the dues and rates paid by operators in the mining sector with immediate effect.

The Minister of Solid Minerals Development, Mr. Dele Alake, disclosed the rate increase at the Ministry’s headquarters in Abuja on Thursday during a press briefing.

He said the government increased a total of 286 rate regimes, ranging from 50 percent to 100 percent, adding that compliance begins immediately.

He cautioned that defaulters would have their licenses revoked.

He said the new increase will also aid the ministry in strengthening the ease of doing business in the sector.

He said: “It is therefore equitable that those who use these services to invest in the mining sector and make profits from it should be on the frontlines of the government’s efforts to recoup rather than pass it on to poor Nigerians.

“Thus, in line with the powers conferred on me by the Mining and Minerals Act 2007, I set up a committee of the directors of departments and directors-general of agencies under the ministry and charged them with the mandate to work out new rates to justify governments’ investment in the service infrastructure and to cope with the expected meteoric spike in the traffic of applicants besieging the regulatory machinery.

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

“This is given by qualitative measures and technological capacity upgrades implemented in recent times to raise the level of technical efficiency, improve the traffic of transactions, and cope with business interest.”