Multiple taxation affects ease-of-doing-business in mining – Association

NAN

The Miners Association of Nigeria (MAN) said multiple taxation levied against mining investors could be an impediment to the success of ‘Ease-of-Doing-Business’ in the sector.

Alhaji Sani Shehu made this known in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja.
Shehu said mining investors were currently paying multiple taxes, royalty, fees among others, which should be addressed urgently.

“The easy-of-doing-business principle introduced by the Federal Government is to encourage investors, it identifies difficulties and challenges that investors can encounter and how to eliminate them.

“The ministry is yet to address the problem of multiple taxation, and investors in the sector are paying different taxes at the Federal and State levels,” he said.

NAN reports that the ministry had stated that it was unconstitutional for state governments to collect royalties and fees from mining companies operating within their jurisdictions.

Shehu also noted the rivalry between the Ministry of Mines and Steel Development (MMSD) and the National Inland Waterways Authority (NIWA) over collection of royalties and other license fees from sand miners and quarry operators.

Currently, MMSD and NIWA collect royalties and other license fees from sand miners and quarry operators throughout the country.

NIWA collects mainly from mining operators who have operations in Nigerian inland waters, while MMSD collects royalties from both marine operators who are mining sand and prospectors of solid minerals nationwide.

According to Shehu, the ministry of environment is also collecting fees from miners at the state level, which he said affects mining operations.

Shehu said the MMSD was the only government institution saddled with the mandate of collecting mining fees, royalties, issuance of mining titles among others.