Mining Sector: FG, RMAFC to deepen collaboration on revenue leakages

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*We’re commited to recovering unpaid royalties and taxes – Alake

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.

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Speaking while welcoming the RMAFC chairman, Mohammed Bello, and his team to his office recently, the Minister of Solid Minerals Development, Dr. Dele Alake commended efforts of the commission to boost revenue accruing to government coffers through mining operations.

Mr. Bello in his remarks stated that the commission’s visit is hinged on pledging support for efforts of the Minister to transform the mining sector since assumption of office and also extract commitment that the commission will get his cooperation to carry out its statutory monitoring activities.

” The commission was instrumental to 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)”, he said.

In his submission, the commission’s chairman of solid minerals committee and commissioner representing Zamfara state, Abubakar Sadiq lauded the Minister for his reforms and leadership that has given visibility to the mining sector, stressing the need for improved collaboration with the RMAFC to address shortfall in revenue remittance by mining operators.

” 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. “

” 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 minimized,” Sadiq added.

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 operators, which he put at several trillions of naira.

” 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, “the Minister asserted.

Alake restated the resolve of government to sanitise the mining environment, ensure it contributes substantially to the nation’s revenue, and ultimately make the sector rival oil in contribution to Nigeria’s GDP.

“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, “Alake said.

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