Mining Sector: RMAFC Verifies, Reconciles Revenue Collections

    0
    37

    By; KATO P. LADAN, Kaduna

    The Revenue Mobilisation and Fiscal Commission (RMAFC) has said that it is verifying and reconciling revenue collections in the mining sector, especially the liabilities established by Nigerian Extractive Industries Transparency (NEITI) in its 2020 Audit Report

    Federal Commissioner, RMAFC,
    Hassan Mahmud, expressed this while speaking at a meeting on the commission’s 2022 nationwide monitoring of revenue collections of the Nigerian Mining Sector, on Thursday in Kaduna.

    The meeting was on the 2022 fiscal nationwide monitoring of revenue collections and the activities of miners in the State and Local Government Councils – Phase II.

    Mahmud explained that the commission was empowered to monitor all revenue accruals from the extractive industries with a view to ensuring prompt and accurate remittances to the Federation Account.

    He said that the commission, in pursuance of its mandate had conducted a nationwide exercise in 2016 in collaboration with the Ministry of Mines and Steel Development and other key stakeholders.

    He said that the exercise was to assess the challenges hindering optimum revenue collection from the sector.

    Mahmud said the commission was conducting a nationwide monitoring of revenue collections and the activities of miners as a follow-up on the 2016 exercise.

    The team leader said that there would be a dialogue with stakeholders on the findings of the 2016 exercise with a view to recommending solutions to the observed challenges.

    He identified the major issues of concern to RMAFC in the NEITI 2020 report as the six companies that did not comply with the NEITI Audit by failing to provide any data.

    He said the material revenue loss of the non-responsiveness was put at N54.25 million, adding that the engagement would determine the number of the defaulting companies in Kaduna State.

    “There is also the issue of underpayment of royalty by 25 enterprises that exported minerals in 2019 with no record of royalty payments.

    “These companies owe the government about N482 million in overdue royalty.

    “There is equally the issue of N2.76 billion outstanding liabilities against 2,119 mining companies nationwide, which arose from failure to pay the Annual Service Fees for their respective mineral titles,” he said.

    The commissioner said that the commission had a constitutional mandate in the extractive sector to recover the established liabilities owed to the Federation Account.

    According to him, this made it necessary to step up collaboration with states, local government councils and stakeholders to ensure the recovery of the established liabilities

    Earlier, Muhammad Sa’idu, Commissioner for Finance in the State, said the meeting was necessary considering the enormous challenges of dwindling oil prices, drop in government revenues, COVID-19, insecurity and other barriers.

    He said the need to source quick alternative to all income could not be over emphasised.

    Sa’idu said Nigeria has over 300 mineral resources available in commercial quantities hence the need to diversify the economic base by shifting attention from the mono cultural commodity.

    “And government revenue inflows will surely be boosted if this sector is vigorously harnessed.”

    The commissioner said the state government under Gov. Nasir El Rufai, had initiated a Strategic Mineral Development Plan to exploit the solid minerals sector by establishing the Kaduna Mining Development Company.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here