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There are two government agencies vested with the power to grant export licenses in Nigeria. They are: The Nigeria Export Promotion Council (NEPC) which is saddled with the responsibility of issuing out export license for agricultural commodities & manufactured goods and the Federal Ministry of Mines and Steel Development which is responsible for granting licenses for extraction & exportation in Nigeria.
FEDERAL MINISTRY OF MINES AND STEEL DEVELOPMENT
Every investor or company willing to engage in the Nigerian mining sector requires a government approval or license to proceed. Mining license in Nigeria is usually relevant for companies seeking to engage in the mining sector, with or without a mining lease.
There are two major types of mining licenses in Nigeria that are relevant and important for every company engaging in mining sector, depending on their type of activities in the sector. These licenses are Possess or Purchase License and Mineral Buying Centre license.
Also important for companies that choose to export the mineral resources is the Mineral Export Permit. The Mining Cadastre Office within the Ministry of Mines and Steel Development (MMSD) are responsible for the issuance of mining licenses and permit.
TYPES OF MINING LICENCE
All the mining licenses and permit serve different purposes and their conditions for issuance come with different requirements. It is important to separately highlight and discuss the various licenses.
- POSSESS OR PURCHASE LICENSE
The Possess or Purchase license is required from company seeking to deal in mineral resources. The Nigerian Mineral Resources Act 2007 stipulates a strict punishment for any individual or company who engage in any mineral resources handling without this particular license.
The requirements to obtain a Possess or Purchase License are as follows:
- Certificate of Incorporation of the Company and other incorporation documents
- Application letter stating the type of minerals to be possessed or purchased
- Evidence of technically competent person such as Geologist with COMEG accreditation.
- List of Equipment
- Mineral you are dealing with
- 3 years Tax clearance certificate of the company
- Attestation of non-conviction for a criminal offence by a Legal Practitioner
- Banker's Reference Letter
- Letter of consent from a Mineral title holder to be possessed or purchased
- Payment of prescribed fee which is N50,000
When a Possess or Purchase License is issued, the duration is 1 year subject to renewal.
Timeline: 3weeks for processing
VALIDITY: 1year
- MINERAL BUYING CENTRE LICENSE
The Mineral Buying Centre License is required for companies or industries willing to process mineral resources in Nigeria. It is also relevant for any companies that choose to warehouse mineral resources, either temporarily or permanently.
The purpose of the license is to regulate and authorize any warehouse where mineral resources will be kept. Any company that wish to engage in warehousing of different quantities of materials for purpose of storing or trading same can obtain this license. Location of the warehouse is to be provided.
The requirements for obtaining Mineral Buying Centre License are similar to that of Possess and purchase License. However, every applicant for the license must have acquired a warehouse to be used for the purpose prior to the application, as such facility would be duly inspected before the issuance of the license.
Timeline for processing; 3-4weeks
VALIDITY: 1year
| Mining Licence Type | Registration Fee (N) | Validity period | Timeline for registration process |
| POSSESS OR PURCHASE LICENSE | 50,000 | I year | weeks |
| MINERAL BUYING CENTRE LICENSE | 50,000 | I year | 3 -4 weeks |
Please note that the registration process for acquiring mining licence can be done online
*MINERAL EXPORT PERMIT FROM FEDERAL MINISTRY OF MINES AND STEEL DEVELOPMENT
Mineral Export Permit is the license or permit that enables any individual or company to export mineral resources out of Nigeria. Export Permit must be obtained each time any resources are to be exported out of Nigeria.
The important requirements for obtainment of Export Permit are as follows:
- Certificate of either Possess or Purchase mineral resources OR Mineral Buying Centre License
- Application letter stating the quantity, type and destination of the mineral resources to be exported.
- Export Certificate from the Nigeria Export Promotion Council
- Evidence of payment of royalties to the Federal Government.
- Payment of prescribed fees.
VALIDITY PERIOD – must be obtained each time any resources are to be exported.
TYPES OF MINING TITLES/LEASE
Mineral title is basically the right to explore or exploit minerals in Nigeria. The Mining Cadastre Office (MCO), an agency under the supervision of the Federal Ministry of Mines and Steel Development, is responsible for the administration and management of mineral titles and the maintenance of cadastral registers.
According to the Nigerian MCO, we have six mining titles and they are as follows:
- Reconnaissance Permit
This permit allows holders to search for mineral resources on a non-exclusive basis. It gives the right to obtain access into, enter on or fly over any land within the territory of Nigeria, likewise the permission to obtain and remove surface samples in small quantities which must be conducted in an environmentally and socially responsible manner.
Upon the payment of a prescribed fee, the MCO is subjected to approve applications from qualified applicants within 30 days of receipt of application with a processing fee of N50,000 payable to MCO through remita. However, excavation drilling and other subsurface activities are not permitted.
Reconnaissance Permit is non-transferable and it is issued for only one year but renewable annually.
- Exploration License
The holder of an Exploration License (EL) has the exclusive right to conduct exploration upon the land within the area of his licence. The mining area for EL usually doesn't exceed 200 square kilometres with a processing fee of N100,000 payable to MCO through remita.
The MCO, under the law is obliged to approve the EL within 30 days of receipt of an application by a qualified applicant.
The holder is allowed to remove, conduct bulk sampling and testing, export and sell mineral resources not exceeding established limits. The licence is for a 3-year initial period but renewable two further periods of 2 years each. Each additional Cadastre Unit costs N1000.
- Quarry Lease
This permit gives liability to exploit all naturally occurring minerals such as clay, marble, gypsum, limestone, gravel, sand, among others.
The lease is issued for five years and renewable every five years, provided the renewal application is made months before the lease expires. The sum of N100,000 is made for the processing fee payable to MCO through remita for a land not exceeding 4 Cadastral Units. Each additional Cadastral Unit costs N50,000
The application is processed within 45 days of receipt of application.
- Small Scale Mining Lease (SSML)
The holder of the Small Scale Mining Lease has the exclusive right to carry out small-scale mining operations within a mining area greater than five acres but less than three kilometre square for a period of five years initial period but renewable for further period of five years only.
The lease is issued within 45 days of application with a processing fee of N50,000 payable to the MCO through remita. Each additional Cadastre Unit costs N20,000. However, when the level of operation of a SSML exceeds the defined area, the holder shall convert such a lease to a Mining lease by submitting a written application to the MCO.
- Mining Lease
The holder of this lease can exclusively use, occupy and exploit minerals within the lease area not exceeding 50 Kilometres Square. The lease is granted within 45 days of receipt of application with a processing fee of N500,000. It is issued for a period of 25 years initial period and renewable every 24 years.
- Water Use Permit
This is granted to the holders of Exploration Licence, Quarry Lease, Small Scale Mining Lease and Mining Lease who require the use of water for their operations.
| Types of Mining Titles | Registration Fee (N) | Validity period | Timeline for registration process |
| Reconnaissance Permit | 50,000 | I year | Within 30days |
| Exploration License | 100,000 | 3 years | Within 30days |
| Quarry Lease | 100,000 | 5 years | 45 days upon receipt of application |
| Small Scale Mining Lease | 50,000 | 5 years | Within 45 days upon receipt of application |
| Mining Lease | 500,000 | 25 years | Within 45 days upon receipt of application |
Documentary Requirements for Mining Lease Application.
- Duly completed Application form
- Copies of Certificate of Incorporation
- Attestation of non-conviction of criminal offender.
- Pre-feasibility study by a Council of Mining Engineers and Geoscientist (COMEG) member.
- Indication of mineral mine
- Evidence of financial capability with sufficient working capital by way of verifiable bank statement of account, Verifiable reference letter.
- Evidence of Technical Competence/competent person(s) in its employment who possess adequate qualification and experience in exploration and exploitation of minerals and registered Council of Mining Engineers and Geoscientist (COMEG), with evidence of CV and certificate of Mining Engineers and Geoscientist, letter of employment and acceptance by Employee.
- Three months Pay slip or Sworn Affidavit.
- Consent letter signed by Landowners/occupiers attached with sworn affidavit from High Court.
- Survey Plan
- Mine Plan/Design
- Prospecting plan showing reserve estimate
- Environmental Impact Assessment/Environment Protection Rehabilitation Plan for application of Mining Lease originating from Exploration licences that have renewed.
- Surface rent Agreement with land owner/occupier
- Community Development Agreement
- Current Tax Clearance
Please note that all documents must be in triplicate
REGISTRATION AT NIGERIAN EXPORT PROMOTION COUNCIL (NEPC).
The Business or individuals who wish to export from Nigeria is required to register with the Nigerian Export Promotion Council (NEPC).
Fees & charges
Obtaining an exporters certificate involves some costs excluding remita / bank charges.
New certificate registration – N13,500.
Documentation
Certificate of Incorporation and other Incorporation documents.
Validity
NEPC issued certificates are valid for an initial two years (24 months ), after which it becomes renewable every year.
Certificate Collection
Physical collection of certificates have been discontinued. Exporters no longer need to visit any of our offices to pick up their certificates. Please follow the instructions below to obtain a print out of your certificate.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
