Tue, Sep 27, 2022
By editor

General News

THE Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) says it is verifying and reconciling revenue collections in the Solid Minerals Sector of the economy.

The Federal Commissioner, RMAFC, Chief Tokunbo Ajasin, stated this at a strategic meeting on the commission’s 2022 nationwide monitoring of revenue collections of the Nigerian mining sector in Akure on Monday at the state Ministry of Finance Conference Hall.

This is contained in a statement by Mr Banjo Egunjobi, the Head of Media Unit of the ministry.

 Ajasin said 25 enterprises exported minerals in 2019 with no record of royalty payment, while about N2.76 billion outstanding liabilities had been established against 2,119 mining companies nationwide.

He said that this  arose from failure to pay the Annual Service Fees for their company titles.

According to the Federal Commissioner, the Commission is empowered to monitor all revenue accruals from the extractive industries to ensure prompt and accurate remittances to the Federation Accounts.

He added that the monitoring was a follow-up on the 2016 exercise to assess the challenges hindering optimum revenue collection from the sector.

Ajasin  said the monitoring comprised revenue collections and the activities of miners in the state.

According to him, the major issues of concern to the Commission is the Nigeria Extractive Industries Transparent Initiative NEITI 2020 report.

He added that the  number of defaulting companies would be determined after engagements.

“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.

He said the 2,119 mining companies’ default nationwide arose from the failure to pay the annual service fees for their respective mineral titles.

Ajasin also said the Commission’s mandate in the extractive sector was to recover the established liabilities owed to the Federation Account.

He, therefore, urged participants to explore the opportunities in the state  to harness the revenue potential in the Solid Minerals sector to boost Internally Generated Revenue.

The State Commissioner  for Finance,  Mr Wale Akinterinwa, stated that the process of allocating the 13 per cent  derivation on crude oil paid to the states  across the federation depended on the effective monitoring of revenue and the collection of established liabilities from mineral  resources.

Akinterinwa noted that the cooperation given by the state Ministry of Finance, Ministry of Energy, Mines and Mineral Resources and others to enforce payment of the reported liabilities  would assist in fulfilling the objectives of the exercise and a means of engaging some Strategic Revenue Drive  for the state.

The commissioner said the present administration of Gov. Oluwarotimi Akeredolu would do everything at its disposal to facilitate the collection of revenue as listed in the NEITI Audit Report 2022.

 He, therefore, urged stakeholders to accord full cooperation to the RMAFC team and be committed to achieving the desired goal.

Also the Permanent Secretary of the Ministry, Rev. Jide Ekpobomini, said sourcing for a quick alternative to all income was necessary and could not be overemphasised.

He said government revenue inflows would  surely be boosted if the sector was vigorously harnessed.

Also his counterpart from Ministry of Energy, Mines and Mineral Resources, Mr Wemimo Ogunsanmi, said the state government had initiated a strategic mineral development plan to exploit the solid minerals sector, hence the establishment of the ministry.( NAN)