The Federal Government of Nigeria, has come to the resolution to deduct from federal allocations, any illegal taxes by states, on the mining sector.
This resolution was made as the Federal Government advised states to register companies and participate in mining but not as sub-national authorities, as laws are in place state that : “The Federal Government has exclusive right to mine and manage all mineral resources.”
This decision was taken during the 11th virtual meeting of the Federal Executive Council (FEC), which was presided over by President Muhammadu Buhari. During this meeting, a minute of silence was observed in memory and honour of Rear Admiral Olufemi Olumide and Major Sam Momah, who were both members of the Federal Executive council, previously.
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The Minister of Information and Culture, Alhaji Lai Mohammed, briefed the State House Correspondent at the end of the meeting, on behalf of his counterpart in Mines and Steel Development, Olamilekan Adegbite, by presenting a memo and asking for council’s approval to address the major challenges the industry is facing. Mohammed said the issue of double taxation, has driven investors out of the country.
Mohammed said: “Among the challenges the industry is facing, according to the Minister, is that of insecurity in certain parts of the country. Notably, in the North Western part of the country, mining has been suspended because of the activities of bandits and kidnappers. The industry is also faced with the problem of collision between some stakeholders, sometimes the traditional rulers. “
In addition to this, Lai Mohammed reported certain decisions of past government, in the area of storage and explosives, that are used for mining. Previously, the position was, any miners who wanted to use explosives during the job, must store them either in military barracks or police facilities. He proceeded to seek special dispensation to build special facilities in each geo-political zone in Nigeria.
