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HomeEconomyMiningLocal investors in mining sector won’t experience multiple taxation: FG

Local investors in mining sector won’t experience multiple taxation: FG

By Folasade Akpa

Abuja, Feb. 28, 2021 The Minister of Mines and Steel Development, Mr Olamilekan Adegbite, has assured miners that the Federal Government would eliminate multiple taxation in the mining sector.
Adegbite gave the assurance on Sunday in Abuja at a forum

He said that the mines and steel development ministry was working with the National Economic Council and the Nigeria Governors’ Forum to ensure that miners were not made to pay multiple taxes.

Observers have been lamenting what they describe as the destructive impact of multiple taxation to the economy of Africa’s most populous nation.

The minister explained that the Federal Government had sole jurisdiction on the mining sector but that whatever was realised from any state, 13 per cent would be paid to the state as derivation as practiced in the oil sector.

“Right now, the money is small because the sector is not so developed so the states are not paying attention that they are getting the money but we call their attention to it.

“Therefore, if we get royalty for gold from Osun State for instance, before it is distributed into the general purse, Osun State will get 13 per cent first.

“The same thing applies to the gold we get from Zamfara State, the derivation goes first to that state.

“We are making the governors to be aware that if they support the Federal Government, they will of course, make money in turn and we are getting good cooperation from the governors.”

Naija247news recalls that the Federal Executive Council had in 2020, authorised the Ministry of Finance, Budget and National Planning, to directly deduct the federal allocation of any state or local councils found to be imposing illegal taxes on mining activities.

The decision followed a memo by Adegbite, seeking the council’s approval to address major challenges facing the nation’s mining industry

Naija247news Nigeriahttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.
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