Stakeholders in Nigeria’s mining sector have come together to urge the federal government to pause the enforcement of increased fees and royalties applicable to the industry.
During a joint press briefing held by the Forum of Concerned Stakeholders in the Nigerian Minerals and Mining Sector, this demand was put forth on Wednesday.
Representing the forum, Prof Akinade Olatunji, the President of Nigerian Mining and Geosciences, emphasized the urgent need for a comprehensive review by the government to prevent the potential collapse of the sector due to the recent rate adjustments.
The call for suspension follows the recent announcement by Dele Alake, the Minister of Solid Minerals Development, regarding a hike in rates for 268 items in the mining sector.
Olatunji expressed concerns over the impact of the rate hike and other challenges facing Nigeria’s mining industry, underscoring the need for a thorough review.
In addition, Dele Ayaleke, the National President of the Miners Association of Nigeria, underscored the importance of effective coordination among mining regulatory bodies to enhance operational efficiency and compliance.
According to Ayaleke, the stakeholders were not consulted prior to the introduction of the new rate hike, leading to frustrations in addressing the issue with the responsible committee. The lack of transparency in the process has raised significant concerns among industry players.
In a statement released by the Forum, stakeholders also called on the Minister of Solid Minerals to invalidate all regulations imposed by sub-national entities in the mining sector, aligning with the Nigerian Minerals and Mining Act, 2027. They further urged the Solid Mineral Development Fund to take over the management of the 2.5 billion warehouses in collaboration with the Bank of Industries to offer single-interest loans to stakeholders.