Indigenous miners under the auspices of Miners Association of Nigeria (MAN) have decried the recent hike in mining rates and royalties by the federal government, saying it has the potential to push local miners out of business.
Earlier this month, the federal government announced an increase in the mining rates and royalties.
National President of the group, Dele Ayankele, in a reaction stated that stakeholders were dissatisfied with the rates.
He told the News Agency of Nigeria (NAN) that apart from the new rate being unrealistic, the hike was done without consultation and also highlighted concerns about the sector’s overall condition, particularly the multiple taxation of operators by state governments.
Ayanleke urged the Federal Government to collaborate with state governments to address the widespread illegality in the sector’s regulatory and governance framework, which is frustrating mining operators.
According to him, once the situation is resolved, stakeholders should be involved in determining the best ways to optimize revenue generation and harness the sector’s wealth creation potential.
“Outrageous upward review of rates and charges can only be interpreted that the government wants Indigenous operators out of mining business,” he stated.
Similarly, President of the Nigerian Mining and Geosciences Society (NMGS), Prof. Akinade Olatunji, said the issue was not just with the review, but the process leading to it.
He said the rate was fixed based on the current selling prices of minerals.
