The recent decision by the federal government to increase mining rates and royalties has faced strong opposition from the Miners Association of Nigeria (MAN). Concerns have been raised by indigenous miners that the new rates could have a detrimental impact on their businesses, potentially forcing them out of the industry.
Dele Ayanleke, the National President of MAN, has expressed dissatisfaction with the sudden increase in mining rates and royalties. He has emphasized the lack of consultation in the decision-making process and raised concerns about the overall state of the mining sector. Ayanleke has also drawn attention to the issue of multiple taxation by state governments, which has compounded the challenges faced by mining operators.
In response to these concerns, Ayanleke has urged the Federal Government to work in collaboration with state governments to address the regulatory and governance framework in the mining sector. He has stressed the need to tackle widespread illegal practices and called for the involvement of stakeholders in finding solutions to optimize revenue generation and harness the wealth creation potential of the mining industry.
The President of the Nigerian Mining and Geosciences Society (NMGS), Prof. Akinade Olatunji, has echoed these sentiments, highlighting that the problem lies not only with the rate increase, but also with the process that led to it. Olatunji has explained that the new rates were determined based on the current selling prices of minerals, which may not accurately reflect the realities faced by local miners.
It is evident that the concerns raised by MAN and NMGS are indicative of the challenges encountered by indigenous miners in Nigeria. The sudden increase in mining rates and royalties could indeed have a severe impact on their ability to operate profitably.
It is imperative for the government to carefully consider the implications of such changes on the livelihoods of local miners and to ensure that their concerns are addressed. With the right support and policies in place, the mining industry has the potential to significantly contribute to Nigeria’s economy and provide opportunities for local communities.
As this issue continues to unfold, it is crucial for all stakeholders to engage in constructive dialogue to find solutions that are fair and equitable. By working together, the government, mining associations, and regulatory bodies can develop policies that support the growth of the mining sector while safeguarding the interests of local miners.
The concerns raised by MAN and NMGS should serve as a call to action for policymakers to re-evaluate the recent hike in mining rates and royalties. It is only through collaboration and thoughtful decision-making that the mining industry can thrive and contribute to Nigeria’s economic development.