Connect with us

Business

New mining rates: Stakeholders decry inadequate consultation

Published

on

Stakeholders in the mining sector have decried the lack of proper consultation before new mining rates were announced by the Federal Government.

The News Agency of Nigeria (NAN) reports that the Minister of Solid Minerals Development, Dr Dele Alake, had on July 5  announced an upward review of rates and charges for all activities in the mining sector.

He said that the move was aimed at positioning the sector for economic consolidation, and was due to the introduction of qualitative measures being implemented.

According to him, the move will raise the level of services, improve transaction traffic, and develop infrastructure.

The new rates include increase in mining lease licences and royalty rates of minerals particularly of lithium, kunzite and gold.

In response to the development, the National President of the Miners Association of Nigeria (MAN), Dele Ayanleke, said that stakeholders were dissatisfied with the rates.

Ayanleke expressed concern with the processes leading to the announcement, and the general state of the sector  particularly the multiple taxation of operators by state governments.

“To say the new rates are high is an understatement; it is unrealistic.

“In a situation where state governments keep on issuing unconstitutional regulations with attendant rates and charges with impunity and the Federal Government, through the Ministry, could not assert its authority on a subject located in the exclusive list.

“ Outrageous upward review of rates and charges can only be interpreted that the government wants indigenous operators out of mining business,” he said.

He urged the Federal Government to engage with state governments to address the widespread illegality in the regulatory and governance framework of the sector, which was frustrating mining operators in their businesses.

ALSO READ:  August Meeting: Tinubu’s wife pledges to empower 37,000 petty traders

According to him, once the situation is resolved, stakeholders should be engaged in determining the best ways to optimise revenue generation, and harness the wealth creation potential of the sector.

Similarly, the President of the Nigerian Mining and Geosciences Society (NMGS), Prof Akinade Olatunji, said that the review was not the issue, but rather the process of arriving at it.

Olatunji said that the ministry had used the current selling prices of minerals as the basis for determining the fixed rates.

“This was done unilaterally without sufficient consultation with relevant stakeholders.

“There are several factors that govern royalty rates. The operators are currently groaning under huge costs aggravated by the prevailing economic challenges, so this may send many more operators out of business.

“What I think Government should do is to get the Mines Inspectorate Division strengthened with more qualified personnel, provide them mobility and running costs and allow them to do their job effectively.

“That would prevent revenue leakage and of course increase the accrual to government,” he said.

He said that the new rates for exploration and mining leases indicates that the entire landscape may just be confiscated by those with deep pockets.

NAN reports that 268 items were reviewed in the new regime.
Investors applying for a mining lease licence 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, Quarry lease and reconnaissance permit, will attract N300,000.

ALSO READ:  ICPC poised to tackle corruption in health sector- chairman

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 among others. (NAN

Business

Uba Sani: Least Paid Worker In Kaduna Earns N72,000

Published

on

Uba Sani, governor of Kaduna, says no worker in the state earns less than N70,000 as salary in compliance with the new minimum wage.

Sani spoke on Thursday at Murtala Square in Kaduna on occasion the Workers’ Day celebration.

The governor said the least paid worker in the state earns N72,000, noting that he believes in the dignity of labour, adding that the issue of incremental adjustment of salaries would be addressed soon.

“I have been involved in the struggle for labour rights, workers’ rights. That is my antecedent. Because of my background, I sat down with the leadership of the Nigerian Labour Congress (NLC),” Sani said.

“I made it clear to them that though we have met the minimum wage requirement but there is something called incremental adjustment which is discretionary.

“Because of my relationship with both NLC and TUC, I asked them that we should sit down and come up with a formular that will make every worker in Kaduna state happy, irrespective of his or her status and they came up with three different options.

“Today, I want to reaffirm to all of you here that by the grace of God, we will look at the incremental adjustment and ensure that even senior civil servants will benefit because we have to make our workers happy.’’

The governor added that his administration also prioritises improving the living conditions of pensioners.

He said the state government has released N3.8 billion to settle outstanding gratuities, death benefits, and accrued rights under the contributory pension scheme in April.

ALSO READ:  Group Slams Zamfara Governor,Daudae Over Insecurity

“Since the inception of our administration, we have cumulatively paid the sum of N10.4 billion in gratuity, death benefits, and accrued rights in the Contributory Pension Scheme,” Sani said.

The governor said the payment of such a huge sum to pensioners is “unprecedented.”

Commenting on the ongoing industrial action by the Kaduna State University branch of the Academic Staff Union of Universities (ASUU), Sani said his administration has done everything to reposition the school.

According to him, more than 60 percent of the courses were not accredited when he assumed office, but his administration spent over N300 million to secure National Universities Commission (NUC) accreditation.

The governor said the striking lecturers’ demands had accumulated over 17 years, with about three of his predecessors unable to settle the liabilities, which now total between N5 billion and N6 billion.

“In spite of this, the lecturers want us to settle these liabilities now, and I said no. I said that we have to sit down and have a dialogue. I then asked them, where were their voices in the last 17 years?” he said.

He promised that the problem would be addressed owing to the importance of education, which he described as the “greatest leveller”.

Continue Reading

Business

PETROAN Asks FG To Prioritise Welfare Of Oil, Gas Workers

Published

on

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has asked the government to prioritise the welfare of oil workers, given the hazardous nature of their work.

In a statement on Thursday, Billy Gillis-Harry, PETROAN’s president, hailed oil and gas workers across the country on Workers’ Day.

According to Joseph Obele, PETROAN’s spokesperson, Gillis-Harry, while addressing journalists in Abuja, appealed to the government and stakeholders in the industry to improve welfare packages and expand health insurance for oil workers.

“Studies have shown that workers in areas where gas flaring is prevalent are at high risk of several health challenges, which can affect them physically, mentally and even increase cancer risks,” Gillis-Harry was quoted as saying.

The association said gas flaring remains a serious problem in Nigeria’s energy industry, exposing workers and nearby communities to harmful health and environmental effects.

The group said the impact of gas flaring highlights the urgent need for better health protection and general welfare for those working in the sector.

According to the statement, Gillis-Harry urged regulatory bodies to strictly enforce existing laws aimed at stopping gas flaring in the country.

“It’s imperative that we prioritise the health and well-being of our workers and protect the environment from the harmful effects of gas flaring,” the president said.

The spokesperson said PETROAN believes ending gas flaring would reduce its harmful impact on workers and host communities and help build a more responsible oil and gas industry.

Obele said PETROAN commended governors who have started paying the new minimum wage, especially those paying above the set rate.

ALSO READ:  Insecurity: APC Forum Accuses Governor Dauda Of Failing to Protect Citizens Amid Party's Abductions

“Billy Gillis-Harry called on governors who are yet to comply to do so in the shortest possible time, emphasising the need for workers to receive fair compensation for their labour,” he said.

He said the association also reaffirmed its commitment to collaborating with stakeholders to support oil and gas workers and ensure safe and healthy working environments.

Obele said PETROAN is of the view that better welfare and an end to gas flaring would boost productivity, reduce accidents, and raise performance across the industry.

Continue Reading

Business

MTN Nigeria posts N1trn revenue surge

Published

on

MTN Nigeria Communications Plc generated N1.0 trillion in service revenue in the first quarter of 2025.

This marks a 40.5 per cent increase from the N752.99 billion earned in Q1 2024.

The company confirmed this in a corporate filing with the Nigerian Exchange Ltd. on Tuesday.

Profit after tax dropped by 134 per cent, falling to N133.7 billion from N392.7 billion in the same period of 2024.

Its total subscriber base grew by 8.2 per cent to 84.1 million, with 3.2 million new additions in Q1 2025.

Active data users rose by 13 per cent to 50.3 million, following the addition of 2.6 million users.

EBITDA climbed 65.9 per cent to N492.7 billion, while EBITDA margin improved by 7.2 percentage points to 46.6 per cent.

The company recorded free cash flow of N209.9 billion and earnings per share stood at N6.38.

MTN Nigeria CEO, Karl Toriola, expressed satisfaction with the Q1 2025 results, citing strong strategic execution and resilient service demand.

He said momentum from Q4 2024 had helped put the firm on track to restore profitability and achieve a positive net asset position.

He added that regulatory approval for price adjustments was essential to sustain investment and maintain service quality.

This approval enabled N202.4 billion in capital expenditure, up 159 per cent, aimed at expanding capacity and enhancing user experience.

Toriola said the 40.5 per cent growth in service revenue underscored strong demand and commercial discipline.

He noted that Q1 results do not yet reflect the full impact of price changes made late in the quarter. (NAN)

ALSO READ:  JUST IN: Tinubu Signs Data Protection Bill Into Law
Continue Reading