The Minister of Solid Minerals Development, Dele Alake, has suggested that the federal government can generate revenue through taxing and royalties on artisanal miners in the country.
Alake who featured in an interview on Channels TV said efforts are being by his ministry made to formalized artisanal mining in the country.
According to him, illegal artisanal miners are encouraged to form themselves into cooperatives, thereby making them bankable and taxable.
He said:
- “For instance, in illegal activities in artisanal mining, we’ve encouraged them to form themselves into cooperatives so that they can no longer become illegal miners. They become formalized and structured.
- “They can become bankable. They can approach the banks for financing, expand the scope of their businesses and become legitimate.
- “And through that, government itself can have bodies or structures to identify and tax and collect royalties from them. These are revenues that have been lost in the past.”
Accounts of illegal mining companies frozen
Speaking further, the minister said there were instances whereby some of the accounts of illegal miners in the country have been frozen.
He also said that the government is currently prosecuting some illegal miners in some states they have carried out operations.
According to Alake, the government is working with host communities to identify and illegal miners in the country.
- “The companies that go into host communities to start digging or mining and all that. We’ve read the Riot Act to them and we are working with host communities to inform us of any illegal mining going on in their states.
- “We have carried out operations in some states. As we speak, some illegal miners that were apprehended have had their accounts frozen. They are being interrogated and will soon be prosecuted,” he added.
More Insights
Earlier, Nairametrics reported that the Minister of Solid Minerals Development, Dele Alake, said the federal government is yet to recover a swooping debt of over N2 trillion from miners and operators in the country.
According to Alake, the current administration led by President Tinubu is committed to stopping the operations of illegal miners throughout the country.
- “Miners and Operators owed the federal government more than N2 trillion while in Kaduna State, it’s over N300 billion.
- “We have made it very clear that in Kaduna State, every operator should make bold steps and clear their debt,” the minister said.
