Governor Ifeanyi Ugwuanyi of Enugu State has advised the federal government to intervene and compel companies with licenses or leases to mining fields in the state to commence operations or have such rights revoked.
He also noted that the practice of holding on to mining leases without utilizing them could be eliminated if governors are involved in the review process preceding the issuance of mining licenses.
The governor made this point when members of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) paid him a courtesy visit at the Government House, Enugu.
Commending the federal government for its commitment to diversify the country’s economy and reduce its dependence on oil, Governor Ugwuanyi stated that the measure would improve its revenue and bolster economic activities across the country.
“We have to say that this initiative is even more important for Enugu State, a state that is richly endowed with solid mineral resources but which, paradoxically, has gained so little from their existence especially after the collapse and eventual winding up of the Nigerian Coal Corporation due to nonchalant and uncooperative attitude of owners of mining leases and licenses in the state,” he said.
Frowning at the excessive amount of revenue lost by all tiers of government through non payment of royalties, VAT, tenement rates, land use charges and income tax by these companies, he urged the National Assembly to consider amending the nation’s constitution towards transferring the prospecting and exploitation of minerals from the exclusive legislative list to the concurrent list, as this would grant states requisite legal basis to participate fully.
Acting Chairman of the Commission, Engr. Shettima Abba Gana, said that
the visit was part of their nationwide tour to monitor the revenue accruable from solid minerals as well as to audit the activities of miners and major operators in the mining sector.
He commended Governor Ugwuanyi for his governance strides evident in the sustained infrastructural development across the state, urging him to identify the abundant mineral deposits in Enugu given that states could apply for mining licenses.
The RMAFC team had earlier held a one-day interactive session on mining sector at Nike Lake Resort Hotel, Enugu, where they enlightened
participants on the potential in the mining sector.
Speaking during the event, the Enugu State Commissioner for Environment and Mineral Resources, Dr. Fidel Ayogu, reiterated the state’s readiness to partner stakeholders in the exploration of its mineral resources.
Ayogu explained that “Enugu State is endowed with more than 40 mineral
resources including coal, zinc, lead, iron and columbite,” adding that if harnessed they will enhance the state’s share of the federal allocation.
