Joint Efforts to Address Revenue Leakages in Nigeria’s Mining Sector
The Federal Government of Nigeria and the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) have united to combat revenue leakages in the Nigerian mining sector. This collaborative endeavour is designed to bolster monitoring and oversight, ensuring that the government receives its fair share of revenue from mining activities.
In a recent meeting, Minister of Solid Minerals Development, Dr. Dele Alake, commended the RMAFC for its efforts to enhance revenue generation within the mining industry. Mohammed Bello, the chairman of RMAFC, expressed the commission’s dedication to supporting the Minister’s initiatives to revamp the mining sector, underscoring the importance of cooperation in conducting statutory monitoring activities.
Mr. Bello emphasised the commission’s role in facilitating the 10% monthly payment from the Natural Resources Development Fund to the Solid Minerals Development Fund (SMDF) and expressed confidence in the potential for further collaboration to address loopholes and augment the mining industry’s contribution to the nation’s Gross Domestic Product (GDP).
The chairman of RMAFC’s solid minerals committee, Abubakar Sadiq, praised the Minister for his leadership and reform efforts, which have brought heightened visibility to the mining industry. He underscored the imperative of working closely with RMAFC to address deficient revenue remittances and enhance oversight of mining operations.
Dr. Alake revealed that the government has implemented measures, including engaging consultants, to identify and recover outstanding royalties and taxes owed by licensed mining operators, totalling trillions of naira. He also highlighted plans to enlist internationally certified auditors to streamline the revenue collection process.
Furthermore, the Minister reiterated the government’s commitment to improving the mining environment, maximising its revenue potential, and positioning the sector as a significant contributor to Nigeria’s GDP, equal to the oil industry. He stressed the importance of collaboration with all stakeholders to ensure that the mining sector benefits the wider population.
The collaborative efforts between the Federal Government and RMAFC signify a pivotal step towards addressing revenue leakages and enhancing transparency within Nigeria’s mining sector. By working in unison to strengthen monitoring, oversight, and engagement with stakeholders, the aim is to cultivate a more robust and financially viable mining industry that benefits the entire nation.
