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He said the speed limit should be “truly targeted” to protect people, but Conservatives criticised him for not scrapping the law which reduced the default speed limit to 20mph in built-up areas.
Answering questions in the Senedd on Wednesday, Mr Skates said most of the cost would go on labour.
“We have carried out early estimates of that,” he said.
“We believe it will be a fraction of the policy implementation costs.
“So between £3m and £5m is what we estimate.
“It won’t go on the shoulders of local authorities – we will find that money.”
Interviewed on BBC Radio Wales Breakfast earlier, Mr Skates failed to back the man commissioned by his predecessor to lead a review of the 20mph policy.
Lee Waters, who was a deputy minister responsible for transport until March, had asked Phil Jones to lead a review of the policy’s implementation.
Mr Jones is the transport consultant who originally told the Welsh government how to implement the new speed default limit.
Asked if he was the right person to lead it, he said: “Too often we talk about politicians and people who are making decisions rather than the policy itself.
“And I don’t want to be drawn in on whether somebody was the right person to lead a review.”
“What’s crucial is that that review reports as soon as possible”.
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