Revenue Leakages : MMSD, RMAFC To Strengthen Partnership

To block revenue leakages in the mining sector, the Ministry of Solid Minerals Development and the Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, have resolved to strengthen the partnership.

Minister of Solid Minerals Development, Dr. Dele Alake made this known when he hosted the Chairman of the
Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, Mohammed Bello, and his team in his office in Abuja.

Dr Alake explained that the federal government has put in place consultants to block leakages and recover funds owed by licensed operators, running into several trillions of naira.

“From our efforts so far, we have been 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 international certified auditors to look at the system and automate the whole gamut of the revenue collection processes “the Minister added.

The Minister emphasized that government resolved to sanitise the mining environment, ensure it contributes substantially to the nation’s revenue and ultimately make the sector rival to oil in contribution to the Nation’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.

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

In his remarks, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, Mohammed Bello stated that the commission’s visit was to pledge support towards the minister’s efforts to transform the mining sector since assumption of office and also to 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 stressed.

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.

He stressed 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.

By Georgina Humphrey, Edited By Grace Namiji