The Federal Government has said that mining companies in the country will soon start paying ‘accurate’ mineral royalties from the proceeds of their operations.
Mineral royalty is tax paid to the government by miners based on a portion of earnings from production. It varies depending on the type of mineral and market conditions.
Operators in the mining sector, who are worried over the plan, had urged the government to come up with interventions to boost production capacity in the industry before increasing the taxes.
However, Minister of State for Mines and Steel Development, Uche Ogah, said the federal government would soon come up with a new policy to ensure that accurate royalties were paid by the miners.
Ogah spoke during a tour of two mining companies, Venus Mining Company and Corner Stone Quarry, located in Dutse, Bwari Area Council, in Abuja.
Nigeria’s mineral rates, currently pegged at 3.5 per cent, is believed to be among the lowest in the world.
The minister explained that mining companies would be required to submit the printouts of their Weigh Bridges to the ministry “so that the exact royalties based on their sales record could be accurately calculated and paid to the government”.
According to him, payment of accurate royalties to government will help to provide much needed funds for infrastructural development in the country.
Ogah enjoined the managements of the companies to ensure that they have functional licences, and that their operations adhered to mining regulations.
He assured that the Federal Government was committed to the provision of an enabling environment for investors in the mining sector.