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    Home » Miners owe FG over N2trn, says minister

    Miners owe FG over N2trn, says minister

    February 4, 2024
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    …Kaduna State miners account for N300bn

    *Dele Alake

    Oritsegbubemi Omatseyin

    Lagos — The Minister of Solid Minerals Development, Dele Alake, has disclosed that miners and operators in the sector owed the Federal Government more than N2 trillion and that miners in Kaduna State alone were owing over N300 billion.

    Speaking during a meeting with Licensed Minerals Holders, Laterite/Sand Operators Dealers in Kaduna State, the minister stressed that the current administration was determined to halt the activities of illegal miners across the country.

    The minister, who was represented by the Acting Zonal Mines Officer, North-West Zonal Office, Kutman Hosea Ali, described the activities of illegal miners as a huge crime against Nigeria and Nigerians, which he said, was unacceptable.

    “We have made it very clear that in Kaduna State, every operator should make bold steps and clear their debt,” the minister said.

    The minister directed that the Special Mines Taskforce, comprising members from the Nigerian Army, Police, Civil Defence Corps, Department of State Security Services, operatives of the Economic and Financial Crimes Commission, and Nigeria Immigration Service headed by Mines officers, be activated in Kaduna to clamp down on illegal miners and nonpayment of royalties, which must be paid every month as well as other taxes to the apex government of Nigeria.

    Alake also addressed the issue of non-remittance of royalties and taxes on mineral resources, to the federal government warning that states failing to comply would face penalties.

    He clarified that while state and local governments could collect other taxes such as ground rent, they are not authorised to collect royalties or mining taxes, which are exclusively under federal control.

    “Let me clarify it, state government and local government are entitled to collect other taxes such as ground rent and other taxes but they are not to collect royalty and tax on mining. Any state government or any local government that collects money in the name of Royalty or Mineral Tax will be deducted from the source allocated to the state.

    “The Special Mines Taskforce has been activated in Kaduna State and they have commenced operations on the war against illegal mining and nonpayment of royalties which must be paid monthly as well as other taxes to the Government of Nigeria,” the minister said.

    He warned miners and operators against going to the field without a mining license while noting that those who had obtained their license should report to the Mines Office, Kaduna to collect permita to mobilise to site.

    He said the purpose of the meeting was to unveil the ministry’s plan for miners and operators for 2024 and beyond. He explained that the mining sector under the administration of President Tinubu was given top priority.

    In his remarks, the Chairman of the Miners Association of Nigeria, Kaduna branch, Ado Dogo who was represented by the Secretary of the association, Kashim Hussaini said the interface between miners and the regulators is imperative as it will allow them to brainstorm towards addressing some challenges bedevilling the mining sector of the economy.

    “We as miners know we are operating within a state, local government, and even down to villages but sometimes, state governors can stop you from working. Meanwhile, this mining operation is what we are doing by contributing to the federation account,” he said.

    He called for respect for the laws guiding mining activities in various states.

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