Nigeria to eradicate multiple taxation in mining sector

The government of Nigeria is set to eradicate multiple taxation in mining sector. Mr Olamilekan Adegbite, the Minister of Mines and Steel Development said the Federal Government is setting in place various measures to help miners.

Adegbite said the ministry was engaging with tiers of government to resolve this issue. He observed that though the constitution vested control of mineral resources in Nigeria in the Federal Government, the fund goes into the Federation Account, of which everybody participates.All the 774 local governments got money from that account but if they cut corners by disturbing the miners with unnecessary local taxes they get discouraged.

Illegal taxes

“It’s double jeopardy when you go and do all these illegal taxes, or you go and disturb the miners, when you will benefit from what is derived in your place, you get a 13% derivation. You also get your share of the federal accounts as of course laid down statutorily. So, it is a continuous process, we educate everybody and I think we are getting good results,” said Mr. Adegbite.

“On that committee, the Federal Government has representatives, the local government has representatives, the governor chooses the chairman and then Ministry of Environment and other stakeholders bring in representatives as well. So, through this committee, everybody can participate, and make sure that we work in harmony, bake a bigger pie so everybody can share. So, its continuous advocacy, we let them know what we are doing and of course they can also participate, where they do not understand or where the governor has any problem he can always ask the chairman,” he added.

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