Miners, Operators Owe Federal Government Over N2Trillion — Dele Alake

Dele Alake

According to Dele Alake, the Minister of Solid Minerals Development, miners and operators in the sector owe the Federal Government over N2 trillion.

Alake emphasized that the current administration under President Bola Tinubu is resolute in its efforts to curb the activities of illegal miners nationwide.

During a meeting with Licensed Minerals Holders and Laterite/Sand Operators Dealers in Kaduna State on Thursday, Alake condemned the activities of illegal miners as a significant crime against Nigeria and its citizens, deeming them unacceptable.

He said, “Miners and Operators owed the federal government more than N2trn” while “in Kaduna State, it’s over N300bn.”

“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, said.

Meanwhile, Minister Dele Alake has instructed the Special Mines Taskforce, which has been mobilized in Kaduna State, to crack down on illegal miners and enforce the monthly payment of royalties and other taxes to the federal government.

The Special Mines Surveillance Taskforce includes members from the Nigerian Army, Police, Civil Defence Corps, Department of State Security Services, operatives of the Economic and Financial Crimes Commission, and Nigeria Immigration Service, with Mines officers in the state leading the team.

He further criticized the failure to remit funds collected as royalties and taxes on mineral resources to the federal government, cautioning that states in default would face penalties.

Alake clarified that mining falls under the exclusive jurisdiction of the federal government, meaning that only the federal government has the authority to collect royalties or any mining tax, while state and local governments are prohibited from doing so.

“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.

“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 added.

He cautioned miners and operators against engaging in field activities without a valid mining license, emphasizing that those with licenses should obtain permits from the Mines Office in Kaduna before mobilizing to sites.

The purpose of the meeting was to unveil the ministry’s plan for miners and operators for 2024 and beyond. Alake highlighted that the mining sector has received top priority under the administration of President Tinubu, underscoring the significance of the gathering.

In his remarks, Ado Dogo, Chairman of the Miners Association of Nigeria, Kaduna branch, represented by the association’s Secretary, Kashim Hussaini, emphasized the necessity of dialogue between miners and regulators. He lamented what he described as state governors’ interference in mining activities, emphasizing the importance of governors adhering to mining laws in their respective states.

“We as miners know we are operating within a state, local government, and even down to villages, but sometimes, state governors can stop you from working. Meanwhile, this mining operation is what we are doing by contributing to the federation account,” he said.