Mining companies in Osun Nigeria to pay tax

Mining companies operating in Osun State are set to pay 13% of their profits into the state coffers. The State Governor, Ademola Adeleke made the announcement during the inauguration of a committee to monitor and regulate activities in the mining sector in the state. He further vowed to prosecute illegal miners and make them pay for damages caused by their activities to the environment in the state.

I Illegal mining

“Osun state according to extant laws is entitled to 13 per cent derivation from every ounce of gold extracted from our gold and other solid mineral fields. Segilola and other operating companies are expected by law to pay Osun State 13 per cent derivation on the value of gold and other solid minerals produced in the last 25 years. Till date, we have no record of any payment made by Segilola and other mining companies to Osun State. My administration is determined to recover every penny owed Osun State by companies operating in Osun gold fields. For the sake of emphasis, denying Osun State of its legitimate revenue through refusal to pay derivation and polluting our environment with impunity will not continue under my watch. I was elected to protect and serve the economic interest of Osun State and that is one of my priorities,” said the Governor.

“All illegal mining activities must stop immediately. Henceforth, all illegal mining syndicates will be arrested and prosecuted. A lot of lives have been lost due to illegal mining and alsoOsun State has been subjected to intense environmental degradation arising from activities of mining companies. River Osun has been polluted and our people are dying as related sicknesses are spreading. These are sad realities which none of the mining companies has raised a finger to address,” he added.