Economy
Nigeria Hikes Mining Rates to Boost Earnings
By Adedapo Adesanya
Nigeria has increased the rates and charges for all activities in the mining sector.
The Minister of Solid Minerals Development, Mr Dele Alake, expressed concerns over non-remittance by some operators, saying they were making huge amounts of money but refused to remit to the federal government.
“Today, we are taking a major step in the efforts to implement the seven-point agenda.
“This is to position the sector for economic consolidation by announcing a new regime of rates and charges for various services of the department and agencies of the ministry.’’
The minister said the development was in view of the introduction of qualitative measures being implemented in recent times.
He added that it would raise the level of the services; improve traffic of the transaction and develop infrastructure.
“For instance, we supervised the successful implementation and conclusion of the mineral sector support for economic diversification mind diver project.’’
He said the mining sector involved the Mining Cadastral Office (MCO)–the agency responsible for licencing which acquired the new mining information system, Electronic Mining Cadastre System (EMC+) portal.
“This enables a 24-hour application and administration system that accelerated the rate of application and access of applicants to MCO, adding that the system had improved transparency.
Mr Alake said the system would also encourage more interest and boost participation in the sector; thereby giving the stakeholders confidence to invest in the sector.
He also said that the Nigerian Geological Survey Agency (NGSA) had acquired an integrated base of data accessible to the public.
“The stakeholders have been enjoying the mining sector; it is therefore equitable that those who invest in the mining sector and make profits from it should be on the front lines of government’s efforts to recoup rather than pass it to poor Nigerians.’’
Mr Alake said that there were about 268 items in the rates regime, adding that it would be difficult to mention all the items.
“The major highlights are as follows: under the new regime, investors applying for a mining lease license will pay N3 million, while Small Scale Mining Lease (SSML) applicants will pay N300,000 for the first two cadastral units.
“The cost to obtain an Exploration Licence (EL) is N600,000 for the first 100 cadastral units.’’
He listed others as a quarry lease and reconnaissance permit which attracted N300,000.
“The aim is to discourage speculation and address the paucity of funds, limiting the Federal Government’s capacity to improve ease of doing business in the sector.
“The new rate, which affects 268 items in the industry, includes an annual service fee of N31,500 for the first time.
“Also, N260,000 for a Small Scale Mining License (SSML), N500,000 for a Quarry Lease, and N1,250,000 for firms operating with a Mining Lease.
“Following the renewal of licenses, the rates for the respective categories will be N42,000,” he said.
Alake said also listed an exploration licence, N420,000, for an SSML N1.5 million for a mining Lease and N1 million for a quarry lease.
“Other services affected by the new regulations include mineral title applications of the MCO, alongside the transfer, enlargement, surrender, and consolidation of mineral titles.’’
According to Mr Alake, the new regulations seek to maximise royalties from critical minerals like lithium and gold to boost the nation’s revenue base and contribute significantly to economic development.
“In the new rates regime, lithium ore lepidolite at the current market value of N600,000 per tonne attracts an N18,000 royalty per tonne.
“Kunzite with a current market value of N3 million per tonne, attracts a N90, 000 royalty per tonne, while lithium ore spodumene with a current market value of N316,667 per tonne, attracts a N9,500 royalty per tonne,’’ he said.
He said that the rates review also affected services rendered by the MCO and the NGSA.
According to the minister, the new rates regime takes immediate effect.
By Aduragbemi Omiyale
The Debt Management Office (DMO) on Monday allotted bonds worth N929.3 billion to investors from the N1.7 trillion bids it received from subscribers.
The exercise, which took place on Monday, July 20, 2026, was oversubscribed by market participants, reflecting the confidence investors have in the government’s ability to redeem the debt instrument on maturity.
On offer for sale for the July auction was N1.2 trillion worth of the FGN bonds, but the DMO allotted below this, despite receiving bids above the offer.
The papers were offered in 10-year, 15-year, and 20-year tenors, at N400 billion each.
For the decade-old note, investors staked N444.47 billion, but the debt office sold N245.73 billion at an 18.34 per cent coupon rate. For the one and a half-decade-old paper, bids valued at N518.00 billion were received by the DMO, with a non-competitive bid of N50.00 billion, with N302.13 billion allotted to investors at 18.40 per cent, and for the two-decade paper, the DMO got competitive bids of N665.19 billion and N381.46 billion was sold to bondholders at 18.35 per cent.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, disclosed that Nigeria’s external reserves had risen to $52.5 billion, enough to finance about nine months of imports.
He disclosed this on Tuesday at the end of the 306th meeting of the Monetary Policy Committee (MPC) held in Abuja, where the Monetary Policy Committee (MPC) retained the benchmark interest rate at 26.50 per cent as well as the standing facilities corridor at +50/-450 basis points around the MPR.
Similarly, the Cash Reserve Requirement (CRR) was maintained at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.
Speaking on FX developments, the central banker said at the $52 billion level, the country’s external reserves were significantly above the internationally recommended threshold of three months of import cover.
On the Naira exchange rate, Mr Cardoso said the foreign exchange market had deepened and was now operating on a transparent willing-buyer, willing-seller basis.
He said the apex bank remained committed to maintaining a liquid and functional foreign exchange market, adding that daily market turnover sometimes exceeded $1 billion.
According to him, the long-term stability of the naira would depend on key economic fundamentals, including increased oil exports, foreign direct investment, and improved domestic productivity to reduce dependence on imports.
He also added that the MPC welcomed the federal government’s renewed commitment to stronger policy coordination, particularly collaboration between fiscal and monetary authorities, which he said had helped reduce the impact of the Middle East crisis on the Nigerian economy.
Mr Cardoso said members of the committee also commended efforts to improve crude oil production and urged relevant agencies to intensify reforms in other sectors, including solid minerals, to boost government revenue.
On the regulatory forbearance granted to banks during the COVID-19 period, he reiterated that this had been discontinued because it had served its purpose.
According to him, the policy had “outlived its time” and was no longer necessary in assessing the health of the banking sector.
“Forbearance, we felt, had outlived its time. Many of you will recall this is something that came as a result of COVID. And now we are in 2026; we did not see the reason why that should continue to form part of the analysis of the banking system,” he said.
Mr Cardoso explained that banks had begun recalibrating their portfolios following the end of the policy, leading to a temporary reduction in outstanding risk assets.
He, however, assured that the development was part of a transition towards a stronger and more sustainable credit environment.
“It reflects a transition to a more sustainable and better quality credit environment, which is what we all want. We don’t want unanticipated shocks that come in a boom-and-bust fashion,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its recent positive run by 1.17 per cent on Tuesday, July 21, triggered by appreciation seen in four bellwethers.
Leading the pack was FrieslandCampina Wamco Nigeria Plc, which added N12.00 to its value to close at N153.15 per share compared with the previous day’s N141.15 per share. NASD Plc appreciated by N1.90 to N36.00 per unit from N34.10 per unit, Food Concepts Plc improved by 23 Kobo to N2.48 per share from N2.25 per share, and Afriland Properties Plc grew by a marginal 1 Kobo to N15.01 per unit from N15.00 per unit.
As a result, the market capitalisation of the bourse increased by N30.40 billion to N2.637 trillion from Monday’s N2.606 trillion, and the NASD Security Index (NSI) gained 50.70 points to finish at 4,393.97 points, in contrast to the 4,343.27 points it ended a day earlier.
The unlisted securities exchange recorded a price loser yesterday, and it was Geo-Fluids Plc, which shed 1 Kobo to settle at N2.30 per share versus N2.31 per share.
During the trading day, the volume of securities traded by market participants on Tuesday dropped 99.4 per cent to 322,147 units from the previous day’s 52.6 million units, the value of securities dipped by 89.8 per cent to N19.4 million from the preceding session’s N191.2 million, and the number of deals contracted by 3.6 per cent to 27 deals from 28 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis, with 3.4 billion units traded for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 75.4 million units exchanged for N5.3 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
