The Federal Government has delivered a stern warning to states and local governments, cautioning them against collecting royalties and taxes from licensed miners operating within their jurisdictions.
As reported by The PUNCH, the Minister of Solid Minerals Development, Dele Alake, conveyed this warning during a meeting held in Kaduna. The minister emphasized that miners and operators currently owe the Federal Government an alarming amount exceeding N2tn.
Alake stressed the urgency of settling these outstanding debts and called on miners and operators to fulfill their financial obligations. The message was delivered by Kutman Ali, the acting Zonal Mines Officer of the North-West Zonal Office, representing the minister, during a meeting with members of the Licensed Minerals Holders and Laterite/Sand Operators Dealers in Kaduna.
The minister disclosed that in Kaduna alone, miners and operators owed the Federal Government “over N300bn.” Alake clarified that the purpose of the meeting was to unveil the ministry’s plan for miners and operators in 2024.
He underscored the obligation for operators to pay monthly royalties and taxes to the Federal Government, emphasizing that royalties and taxes are exclusively the domain of the Federal Government. Alake stated, “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.”
He warned that any state government or local government collecting money in the name of royalty or mineral tax would have the amount deducted from their federal allocation.