The mining industry is one of the most lucrative industries in Nigeria today. With Nigeria boasting various kinds of mineral resources in large quantities, it is easy to see why many businesses and individuals have invested heavily in the mining space.
The Federal government pays special attention to this industry and it is highly regulated. To ensure compliance with standards, the Federal Government requires companies or individuals looking to dive into the mining sector to have acquired the Mining license.
In this post, we will take a look at how much it costs to acquire a mining license in Nigeria. We will also consider the requirements and expectations before the license can be issued.
Cost of Mining License in Nigeria
There are different classes of mining licenses. Generally, these licenses, depending on what you are looking to do in the mining industry, are required for every company and individual looking to dive into the industry. While there is a fixed charge for the license, the overall amount you’d pay depends on the other services the consultant is doing.
Generally, the amount that will be charged for the mining license depends on the nature of the work that is to be done by the professional. Officially, the Possess or Purchase License costs N30,000. However, other charges, including the processing fees, the consultancy fees, and other related fees make this quoted amount way higher. This depends on the company’s or individual’s negotiation with the professional.
Requirements for Mining License in Nigeria
Before a company or individual is granted a mining license in Nigeria, there are a few requirements involved. Here are some of the requirements you should have readily available before initiating the process of application for mining license in Nigeria
- Certificate of Incorporation of the Company: Before you initiate the application process for the mining license, you should ensure you have your company’s certificate of Incorporation of the company in place. You should also have other related incorporation documents as they would be required for the application.
- Application letter – You also need to have an application letter in place. This letter will state the part of the mining sector you are looking to go into and the type of minerals involved.
- Evidence of technically competent person – The mining industry is a specialized space and requires loads of expertise. Hence, while you are applying for the license, you will be required to indicate the experts you will be working with. These experts are also expected to be certified in their respective fields. The experts could be a Geologists, for example, with COMEG accreditation.
- Tax clearance certificate of the company – The applicant will also be expected to submit evidence that the company pays taxes as expected. They are required to submit their tax clearance certification.
- Attestation of non-conviction for a criminal offence by a Legal Practitioner – There is also a need to get Legal practitioners involved as there is a requirement for attestation of non-conviction for a criminal offence.
- Banker’s Reference Letter – A reference letter from the company’s banker will also be required as part of the application process. Hence, the applicant should have a stamped reference letter from the banker ready before the application for the mining license starts.
- Payment – This is the last requirement and it comes when the application for the license itself has kick started. You are required to pay specific amount, depending on how much the consultant helping with the process has charged. You can read preceding sections in this post for further details as regards the payment of prescribed fees. Once these documents are in place, you should have a smooth registration process.