Menu Close

Mining Sector: Federal Government, RMAFC to deepen collaboration on blocking revenue leakages

L-R: Dr. Oladele Alake, Honourable Minister for Solid Minerals Development, Minister of Solid Minerals; Mohammed Bello Shehu, OFR, Chairman of RMAFC; and Alhaji Abubakar Sadiq, Federal  Commissioner, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Zamfara State, During the Visit to the Minister's Office, in Abuja, FCT, Recently        Photo: State House

*Dr. Oladele Alake, Minister for Solid Minerals Development, asserts the Federal Government of Nigeria’s commitment to recovering unpaid royalties and taxes in the mining sector of the country’s economy 

Alexander Davis | ConsumerConnect

The Federal Government, through the Ministry of Solid Minerals Development and the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), have resolved to strengthen collaboration to block revenue leakages in the mining sector of the economy.

Dr. Oladele Alake, Honourable Minister for Solid Minerals Development, who stated this while speaking while welcoming Mohammed  Bello, Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), and his team to his office in Abuja, FCT, recently.

Alake commended efforts of the Commission to boost revenue accruing to the government coffers through mining operations.

Segun Tomori, media aide to the Minister Sunday, January 28, 2024, said Bello, in his remarks, stated that the RMAFC’s visit is hinged on pledging support for efforts of the Minister to transform the mining sector since assumption of office.

The Chairman also noted the visit was to extract commitment that the Commission would get his cooperation to carry out its statutory monitoring activities in Nigeria.

Bello equally stated: “The Commission was instrumental in getting the 10% monthly payment from the Natural Resources Development Fund to the Solid Minerals Development Fund (SMDF), and we know we can do much more together under your guidance and leadership to sanitise the sector, plug all loopholes and ensure the mining industry becomes a big chunk of our nation’s Gross Domestic Product (GDP).”

In his submission at the meeting, the Commission’s chairman of solid minerals committee and commissioner representing Zamfara state, Abubakar Sadiq, lauded Dr. Alake for his reforms and leadership that has given visibility to the mining sector.

Sadiq emphasised the need for improved collaboration with the RMAFC to address shortfall in revenue remittance by mining operators.

The statement quoted him to have said: “Our evaluation of mining operations across the country has shown a shortfall in revenue to government.

“There is a monitoring gap. Government and RMAFC should strengthen collaboration to seal this gap and plug leakages in the system.”

He explained, “we are also making a case for proper supervision and documentation of minerals exported through our borders whilst also urging that the environmental impact of mining operations should be looked into and minimised.”

Dr. Alake, in his response, revealed that the Federal Government has put in place measures like engaging consultants to block leakages and recover funds owed by licensed mining operators, which he put at several trillions of Naira.

The Minister further stated: “From our efforts, so far, we have discovered to our chagrin that we are owed trillions of Naira in unpaid royalties and taxes by legalised operators.

“We are committed to recovering these funds and also in the process of engaging internationally certified auditors to look at the system and automate the whole gamut of the revenue collection processes.”

Alake, however, restated the resolve of the current administration to sanitise the mining environment, ensure it contributes substantially to the West African country’s revenue, and ultimately, make the sector rival oil in contribution to Nigeria’s Gross Domestic Product (GDP).

The Minister for Solid Minerals Development said: “We are ready to collaborate with you, states, and host communities to maximise the potential of the mining sector for the benefit of all Nigerians.

“Our focus is to ensure that the industry translates to greater good for the greatest number of our people.”

Kindly Share This Story


Kindly share this story