In this article, we shall take a detailed look at the current cost of obtaining a mining licence in Nigeria this 2023. This business, although risky, is very lucrative, and the mining sector generates billions of Dollars for the Federal Government due to the fact that there is an abundance of mineral resources deposited beneath the earth on which the country sits. Many businesses and even individuals have ventured into mining but just how much does it cost to obtain a mining licence in Nigeria? We shall find out about that shortly.
The reason why individuals and large businesses must obtain a licence before they can be given the all clear to mine in any part of the country is because this sector is highly regulated by the Federal Government of Nigeria, and to make sure that the relevant stakeholders comply with the laid down rules and regulations of the Federal Government, they are required to obtain this mining licence or face the full wrath of the law.
As we proceed in this article, we shall take a detailed look at the prerequisites for obtaining a mining licence in Nigeria before bringing the post to a close by giving the current cost of obtaining this licence in the country today. Kindly continue reading as we do justice to this topic.
PREREQUISITES FOR OBTAINING A MINING LICENCE IN NIGERIA 2023
There are certain prerequisites or requirements that must be in place in order for a company or an individual to be given a mining licence by the Federal Government of Nigeria. Some of these requirements include the following:
CERTIFICATE OF INCORPORATION OF YOUR COMPANY
Before ever applying for a mining licence in Nigeria, be informed that you must have incorporated your company and that your certificate of incorporation must have been obtained. Other relevant documents that accompany the incorporation of your company must also be made ready as they will all be required for your mining licence application.
PREPARE AN APPLICATION LETTER
After making ready the certificate of incorporation of your company, the next thing to do is to prepare an application letter stating in clear terms the particular sector of the mining industry that you want to venture into as well as the mineral resources involved.
EVIDENCE OF TECHNICALLY COMPETENT PERSON
Because the mining industry in Nigeria is specialized and requires a lot of expertise, you will be required to indicate the experts you will be working with when applying for your mining licence. The experts you have indicated must be certified in their respective fields. They could be geologists, with COMEG accreditation for instance.
PRODUCE THE TAX CLEARANCE CERTIFICATE OF YOUR COMPANY
While you are applying for your mining licence, you will be required to submit an evidence that shows that your company pays taxes as mandated by the Federal Government. Therefore you are to submit your company’s tax clearance certification for verification.
ATTESTATION OF NON-CONVICTION FOR A CRIMINAL OFFENCE OFFENCE BY A LAWYER
You must also provide evidence, through competent lawyers/legal practitioners that you have never been convicted for a criminal offence in the country. This is done as there is also a prerequisite for attestation of non-conviction for a criminal offence while you are applying to obtain your mining licence in Nigeria.
BANKERS REFERENCE LETTER
You are to obtain a reference letter from your company’s banker as this is also an important requirement for your mining licence application process to go smoothly. You as an applicant for a mining licence in Nigeria must provide a stamped reference letter from your banker and present it once your application commences.
MAKE THE NECESSARY PAYMENT
Once you have successfully completed all the requirements for obtaining your mining licence in Nigeria, the last thing to do is to make the necessary payment. This payment depends on how much the consultant helping you with the application process has charged. Once all your required documents for your mining application are in order, you should have no qualms with your registration.
CURRENT COST OF OBTAINING A MINING LICENCE IN NIGERIA 2023
On the average, this 2023, the price it will cost to pay for obtaining a mining licence in Nigeria is about ₦30,000 currently, and this amount is charged depending on the nature of the work that is to be done by the professional helping you to obtain the licence. Other charges such as the processing fee, consultancy fee, etc may increase the price a bit. This is where an individual’s or company’s negotiation skills come into play.
You should bear it in mind that there are different classes of mining licences issued in Nigeria, and these licences are obtained based on what you want to do in the mining sector. They are required for every company and individual looking to venture into the mining industry, without which you cannot be allowed to go into this sector by the Federal Government. As we have earlier mentioned, there is a fixed charge for obtaining the licence, but the overall amount you will pay depends on the services your consultant is rendering and your negotiation skills.