- Dele Alake Warns States to Keep Off Royalties Collection
By Ken Afor
The Federal Government, in its bid to rid the country of illegal mining activities and other related crimes, has announced that it has commenced clamping down on operators without a mining license.
In a meeting with licensed mineral holders, laterite/sand operators, and dealers in Kaduna State on Thursday, the Minister of Solid Minerals Development, Mr. Dele Alake, represented by the Acting Zonal Mines Officer, North-West Zonal Office, Kutman Hosea Ali, revealed that miners and operators in the sector are indebted to the tune of more than N2 trillion.
The meeting marked the unveiling of the ministry’s roadmap for miners and operators for 2024 and beyond.
According to the minister, operators in Kaduna State alone owe the Federal Government more than N300 billion.
While describing the menace of illegal mining activities in the country as a crime, Mr. Alake emphasized that President Tinubu is committed to ensuring that the country is rid of such activities, which have long robbed Nigeria and Nigerians of the gains from its mineral resources over the years.
According to him, “Miners and Operators owed the federal government more than N2trn” while “in Kaduna State, it’s over N300bn.”
“We have made it very clear that in Kaduna State, every operator should make bold steps and clear their debt.”
To sanitize the sector of illegal mining activities and other related crimes, the Special Taskforce has reportedly commenced its exercise to clamp down on illegal miners and ensure operators settle their debts to the federal government.
The Special Mines Surveillance Taskforce is comprised of members from the Nigeria Army, Police, Nigeria Civil Defence Corp (NCDC), Department of State Security Services (DSS), operatives of the Economic and Financial Crimes Commission (EFCC), and Nigeria Immigration Service (NIS), with the team headed by Mines officers in the state.
The Minister, however, called on states to refrain from collecting royalties and tax on mining, warning that defaulting states would face sanctions.
He noted that states are entitled to collect only ground rent and other taxes, with the exemption of royalties, reiterating that mining is on the exclusive list controlled by the federal government.
“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 had commenced operation 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 added.
The Minister urged miners who had obtained their license “should report to the Mines Office, Kaduna to collect permit to mobilise to site”.
The Chairman of the Miners Association of Nigeria, Kaduna branch, Ado Dogo, represented by the association’s Secretary, Kashim Hussain, lamented the unhealthy relationship between miners and regulators, particularly in the state and local government.
He, therefore, called on state governors to adhere to the laws guiding mining activities in their respective states.
“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.
