The Federal Government has said that any illegal fees imposed on mining companies by state governments will be deducted from the allocation of such state.
This was disclosed by the Minister of Information and Culture, Lai Mohammed following a decision reached by the Federal Executive Council on Wednesday in Abuja.
The minister said the decision was to eliminate double taxation in the mining sector and also gain investors’ confidence in the sector.
He said, “On the issue of double taxation whereby mining companies are taxed by local and state governments, two decisions were taken.
“One is that the council directed the Minister of Finance, Budget and National Planning to deduct directly from federal allocations of states which have deprived Federal Government of Nigeria’s revenue due to it by imposition of illegal taxes and levies on mining companies in their states.
“In other words, if a particular state engages in double taxation, you are imposing illegal taxes on a duly registered mining company, and it is reported to government, the Ministry of Finance, Budget and National Planning will deduct that money from your allocation.
“The intent is to ensure that we don’t scare away investors, be they local or foreign. This will go a long way to reassure the investors that Nigeria is a safe place to invest now.”
The Minister of Finance, Budget and National Planning, Zainab Ahmed, has been appointed to implement the decision.
Mohammed added that “Before now, the position is that any miner that wants to use explosives for mining must store them in either the military barracks or police facilities.
“So, Adegbite asked for special dispensation to build special facilities at least one in each of the Geo-political zones of the country. He also complained about extortion, the position of community development agreement, and the issue of many illegal miners.”
