FG says miners, operators owing the country over N2trn, vows stringent action against illegal mining

FG says miners, operators owing the country over N2trn, vows stringent action against illegal mining

Feb. 1, 2024

The Federal Government has revealed that miners and operators across the country owed the Federal Government over N2trillion, with Kaduna State alone accumulating a debt exceeding N300billion.

While declaring unwavering commitment to take decisive measures against individuals involved in illegal mining nationwide, describing it as a serious crime that cannot be tolerated, it urged the operators in the state to endeavour to clear their outstanding debts promptly.

This was disclosed during a meeting with licensed mineral holders, laterite and sand operators in Kaduna State, held in Kaduna to address the challenges in the mining sector.

The Minister of Solid Minerals Development, Dr. Dele Alake, represented by the acting Zonal Mines Officer, Mr. Kutman Ali, emphasized the importance of adhering to proper licensing procedures.

The minister urged the mining operators to obtain a permit after securing their mining license, stating, “permit to mobilize to site is a letter that will introduce you to the state and local governments as well as communities through their traditional ruler, making mining activities smoother.”

Alake said that the meeting was to outline the minister’s plans for the mining sector in 2024 and beyond.

He emphasised the revitalization of the Special Mines Surveillance Taskforce (SMSTF) to combat illegal mining and ensure timely payment of royalties and taxes.

The minister also detailed the composition of the SMSTF, comprising members from the Nigerian Army, Police, Civil Defence Corps, DSS, EFCC, and the Nigeria Immigration Service, with Mines Officers leading operations at the state level.

Alake further clarified that state and local governments were not authorised to collect royalties or taxes on mining activities, advising that grievances should be reported to the nearest mines office for appropriate action.

In a response, Mr Ado Dogo, Chairman of the Miners Association of Nigeria, Kaduna State branch, commended stressed the need for an improved communication between miners and regulators to address the prevailing challenges.

Dogo lamented interferences by some state governors in mining activities and called for the minister’s intervention to ensure adherence to constitutional jurisdictions.

A former General Manager the of Kaduna State Public Works Agency, Mr. Tanimu Abubakar, raised concerns about multiple tax collections by both federal and state governments.

He advocated a waiver of ground rent to attract more investors to the sector.(NAN)