How Adeleke goofed on 13% derivation on minning – Osun APC

The Osun State chapter of the All Progressives Congress (APC) has lashed out at the state governor, Senator Ademola Adeleke, for his exhibition of poor understanding of statecraft and governance.

The party, in a statement issued by its Acting State Chairman, Sooko Tajudeen Lawal, on Monday in response to what it called the governor’s embarrassing broadcast on the mining sector, said the claims of Governor Adeleke that the state governments in the last 25 years have either mismanaged returns on mining or have failed to recover derivation due to the state were fraught with ignorance.

According to Lawal: “The claims made by Governor Ademola Adeleke today, during the inauguration of the Revenue Committee and Solid Minerals Committee set up by his government, are ones made out of ignorance and mischief designed to embarrass previous governors of the state.”

The Acting State APC Chairman said: “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”, Lawal stated.

The Acting State APC Chairman maintained that it is from the royalty paid to the Federal Government that the 13 per cent derivation is calculated and handed to the state.

The Ile-Ife-born APC chief said it was alarming that no expert in the team of Adeleke could extend to the governor the needed information on this sensitive matter.

The visibly disappointed Acting State APC chairman also said it was outright misrepresentation of fact the Osun state governor’s allegation that the previous governments had failed to account for derivation due to the state in the last 25 years.

In his words: “It is preposterous for the new government to demand 25 years derivation from Segilola Company.

“Is the company 25 years old in the state? Are the current government handlers aware that Segilola Company only began commercial operation in the state last year (2021); so from where did the idea of 25 years derivation arrears come?

“Matter-of-factly, the company is on a three-year tax holiday. The implication is that the company, during the administration of Governor Adegboyega Oyetola, did not pay any royalty to the Federal Government that Osun State would have laid claim to any 13 per cent derivation.

“If there was anything the state government benefited from the state government, it was the usual PAYE tax on its employees or perhaps Land Use Tax”, Lawal explained.

The Acting State APC Chairman admonished the new governor to redeem himself of political pettiness and get decent and truthful professionals that would save his government from the current doldrum that has become a huge embarrassment to the people of the state.

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