13% Derivation Paid To FG, Not State, Mining Consultant Corrects Gov Adeleke

Following the lamentation made by Governor Ademola Adeleke that mining companies in Osun State have refused to remit 13 per cent derivation on gold mined to the state for about 25years, a Mining consultant to Zamfara, Kebbi, Sokoto and Osun States’ Government, Mrs Jumonke Lawoyin, has told the governor that 13 per cent derivation is remitted to Federal Government and not state.

THE WHISTLER recalled that Adeleke while inaugurating Solid Mineral Sector Committee on Monday vowed to recover all derivation fund owed the state in the past 25 years by Segilola and other mining companies in the state.

Mrs Lawoyin while featuring on a private radio station, Rave FM, during a talk show programme, Frank Talk monitored by THE WHISTLER, she, “The Federal Government has the sole authority on mining. Mining companies do not pay derivation to the state government, they pay to FG who will now pay the state, this is how it works.

“The only way the state can generate money is through artisanal miners who pay taxes. Most government do not understand how mining works, even the people. So, it is very difficult to make enforcement. There are rules already.

“The state loses a lot of money to miners because lands are sold to people to come and mine, it is wrong to sell your land for mining. I want to commend the past administration of Oyetola for curbing activities of illegal mining and I hope that this government will do the same. This government should make the monarchs to understand that you can sell land for building and others but not for mining. We must learn how to do things properly. We must assist the government to achieve success in mining by knowing the Federal Government roles on mining.”

Lawoyin noted that “It was not correct to allege that Segilola has not done anything to the state since they established here, because they have been doing a lot to the community and paying a lot of royalty to the community where they are operating. They have done roads, schools, hospitals and they have continued to do more.”

“The present government should appreciate them so that they can do more and talk to them on areas where they think they can do more. Segilola has contributed alot in mining sector not only in Osun but Nigeria.”

Similarly, the APC through it spokeperson, Kola Olabisi, berated Governor Ademola Adeleke for his exhibition of poor understanding of statecraft and governance.

Olabisi held that Adeleke goofed on the 13 per cent derivation on mining, saying, “the statement on mining were fraught with ignorance and mischief designed to embarrass previous governors of the state.”

According to him, “It is worrisome that a state government which should have access to quality expert advice from the relevant Ministries, Departments and Agencies would issue an official statement to advertise its administrative unawareness and unseriousness about 13% derivation on mining.

“Contrary to Governor Adeleke’s claim that Segilola Company and other operating companies in the state are expected to pay Osun State 13 per cent derivation on the value of gold and other minerals resources produced in the last 25 years in the state, the correct information is that miners don’t pay derivation to state.

“The miners pay royalty, ranging from three per cent to five per cent of every ounce of gold or solid minerals extracted in the state, to the Federal Government because Mining is under the Exclusive List or authority of the Federal Government.”

However, PDP through it caretaker chairman, Akindele Adekunle, accused the APC of colluding with those depriving Osun state of legitimate returns from her huge mineral deposits,

He held that APC is protecting Segilola and other mining companies over the cheating and pillaging of Osun resources.

“We are not surprised as there are credible reports on how the mining companies regularly settle top officials of the APC and its government. When the People’s Governor now exposes the nest of corruption, the state APC cannot even disguise to manifest its complicity. Osun people have taken judicious note of APC condoning and facilitating the fleecing of Osun natural resources.

“The 13 percent derivation payment was openly announced by the Federal Government in 2019 and whatever names anybody called it, Osun deserves billions of returns from her God given natural resources. Even APC in advancing her hatchet job, confessed that 13 percent derivation was to be paid to solid mineral states from royalties by mining companies.”