In this post, we’ll examine the current cost of obtaining a mining license in Nigeria for the year in great depth. Even though it’s dangerous, mining can be highly lucrative, and the federal government produces billions of dollars in revenue from the richness of natural resources buried beneath the earth’s surface. How much does it cost to get a mining license in Nigeria? We’ll find out in due time.
Individuals and large businesses must obtain a license before they can be given the green light to mine in any part of the country because this sector is heavily regulated by the Federal Government of Nigeria, and in order to ensure that the relevant stakeholders comply with the Federal Government’s rules and regulations, they must obtain this mining license.
As we move forward in this article, we will take a closer look at the requirements for obtaining a mining license in Nigeria before concluding with the current cost of obtaining this license in the country today. Please keep reading so that we can do this topic justice.
PREREQUISITES FOR OBTAINING A MINING LICENSE IN NIGERIA
Certain conditions or requirements must be met in order for the Federal Government of Nigeria to provide a mining license to a company or individual. Among these requirements are the following:
YOUR COMPANY’S CERTIFICATE OF INCORPORATION
Before applying for a mining license in Nigeria, be aware that you must have incorporated your firm and gotten your certificate of incorporation. Other important documents that precede your company’s incorporation must also be prepared, as they will all be required for your mining license application.
WRITE AN APPLICATION LETTER
Following the preparation of your company’s certificate of incorporation, the next step is to produce an application letter outlining the specific sector of the mining industry into which you wish to delve as well as the mineral resources involved.
EVIDENCE OF TECHNICAL COMPETENCE
Because the mining sector in Nigeria is highly specialized and demands a high level of experience, you will be asked to list the specialists you will be working with when applying for a mining license. The specialists you’ve mentioned must be certified in their professions. They could be geologists with COMEG certification, for example.
PRODUCE YOUR COMPANY’S TAX CLEARANCE CERTIFICATE
When you apply for your mining license, you will be asked to produce proof that your company pays taxes as required by the federal government. As a result, you must submit your company’s tax clearance certificate for verification.
A LAWYER’S ATTESTATION OF NON-CONVICTION FOR A CRIMINAL OFFENCE
You must also show, through qualified lawyers/legal practitioners, that you have never been convicted of a criminal offense in the country. This is done because the testimony of non-conviction for a criminal charge is also required when applying for a mining license in Nigeria.
REFERENCE LETTER FOR BANKERS
You must get a reference letter from your company’s lender, as this is also a crucial condition for the successful operation of your mining license application procedure. As a mining license applicant in Nigeria, you must provide a stamped reference letter from your banker and deliver it after your application is accepted.
MAKE THE REQUIRED PAYMENT
After you have completed all of the prerequisites for acquiring your mining license in Nigeria, the final step is to make the required payment. This cost is determined by the amount charged by the consultant who assisted you with the application procedure. Once you have all of the necessary documentation for your mining application in order, you should have no problems registering.
WHAT DOES IT TAKE TO START A MINING COMPANY?
To set up a mining company here in Nigeria is never an easy task, not only that, the cost of starting is very large. There are numerous machines and equipment that you will be needing so as to established a perfect mining company.
But we do advise anyone who is planning to venture into that area to have set aside at least 1 Billion before thinking of starting such an organization.
THE CURRENT COST OF OBTAINING A MINING LICENSE IN NIGERIA IN 2021
The current cost of obtaining a mining license in Nigeria in 2021 is around 30,000, with the amount charged depends on the type of work to be done by the professional assisting you in obtaining the license. Other fees, such as the processing cost, consultancy fee, and so on, may somewhat raise the price. This is when a person’s or a company’s negotiating skills come into play.
Keep in mind that numerous types of mining licenses are issued in Nigeria, and these licenses are obtained depending on what you wish to achieve in the mining field. They are essential for any company or individual wishing to enter the mining industry, and the Federal Government will not allow you to do so unless you have them. As previously stated, there is a fixed fee for acquiring the license, but the total price you will pay is determined by the services provided by the consultant and your negotiating skills.
We have given you an insight on the cost of obtaining a mining license here in Nigeria, necessary documents that will be required have been stated as well.
If you have previous knowledge or idea you think will be useful for others planning to set up this company or you have worked closely either with the registration company or any mining company, it will be appreciated if you can drop your opinion about mining company and the registration couple with things that need to be in place before venturing into this business.