The Minister of Solid Minerals Development, Dele Alake has approved the transfer of N2.5 billion mining sector support fund from the Bank of Industry to the Solid Minerals Development Fund, SMDF.
The Minister disclosed this in a statement on Friday by his spokesperson, Segun Tomori after meeting with Stakeholders on the review of mining license rates in Nigeria.
Aleke and Stakeholders arrived at a consensus to review the recently raised 100 percent royalty rates for minerals.
According to the Minister, the rate review aims to align the sector with current market realities and to ensure more effective management of Nigeria’s mineral resources.
He assured Stakeholders that dialogue is ongoing with state governors and the Nigerian Governors Forum (NGF) over interference by state governments leading to the shutdown of licensed mining operations and the duplication of federal regulations.
“Dele Alake, the minister of Solid Minerals Development, explained that the revised license rates are necessary to help the government recover investments made in improving the sector’s infrastructure. These changes are also aimed at deterring speculators who hold mining titles without any active mining operations”, the statement reads.
Recalls that the federal government had raised royalty rates by 100 percent and also introduced new rates and charges for mining licenses and others recently.
Transfer N2.5 mining support fund to SMDF – Nigerian Minister tells Bank of Industry