The federal government has threatened to deduct directly from the monthly allocation of state government that fails to pay mining royalties to the centre.
Dele Alake, the Minister of Solid Minerals Development issued the threat on Thursday in Kaduna at a meeting with Licensed Minerals Holders, Laterite /Sand Operators Dealers in the state.
The minister said what states government are owing federal government over N2 trillion as mining royalties collected from miners.
According to the minister, it’s wrong for the state governments to collect royalties in behalf of the federal government, and failed to remit same to the appropriate quarters.
He said a special task force has been set up to tackle the activities of illegal miners in the country, stressing that state governments “are not to collect royalty and tax on mining.”
“Miners and Operators owed the federal government more than N2 trillion,” the minister who was represented at the event by the Acting Zonal Office r, North west zonal office, Kutman Hosea Ali, stated.
“We have made it very clear that in Kaduna State, every operator should make bold steps and clear their debt,” the minister, represented by the Acting Zonal Mines Officer, North-West Zonal Office, Kutman Hosea Ali, stated.
Adding that “Any state government or any local government that collects money in the name of Royalty or Mineral Tax will be deducted from the source allocated to the State.
“The Special Mines Taskforce has been activated in Kaduna State and they had commenced operation on the war against illegal Mining and nonpayment of royalties which must be paid monthly as well as other taxes to the Government of Nigeria.”
The minister recently accused some prominent Nigerians of aiding illegal mining in the country, which fueled insecurity.
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