Solid minerals net N14.6bn into federation account

The solid minerals sector remitted N14.6 billion revenue into the federation account in the last eight years, revenue chart of Revenue Mobilization Allocation and Fiscal Commission (RMAFC) exclusively sourced over the weekend revealed. There is a pending N32 billion (tax and royalties) due for payment by licensed mining operators in 2018, a top officer of the Ministry of Mines and Steel Development (MMSD) told New Telegraph. Analysis of the chart showed that in 2009, solid minerals revenue, paid into federation account, was N931.7 million; N1.2 billion in 2010; it increased to N1.3 billion in 2011 and N1.8 billion in 2012. Similarly, the sector’s remittance to the federation account stood at N2.037 billion in 2013, N2.3 billion in 2014, N2.085 billion in 2015 and N2.8 billion in 2016. In December 2017, revenue performance report of the Ministry of Mines and Steel Development (MMSD), sighted by this medium, showed that the sum of N413 million was collected and paid to the federation account, an amount higher to November figure of N397.4 million.

The December figure was higher than the ministry’s monthly target of N262,252,698.82 by N150,772,945.18 indicating 57.50%. Outstanding balance in the solid mineral revenue account as of December 2017 stood at N8.5 billion. Confirming the figures to New Telegraph, Acting Chairman, RMAFC, Alhaji Shettima Umar Abba Gana, said the commission’s effort to achieve resources diversification is paying off. Abba Gana confirmed that 13% derivation principle is currently being paid to states whose solid mineral revenue was paid into federation account.

“The result has been very positive. The reason we took that line was simply because, depending on only one source, the oil, for revenue has opened Nigeria to vicissitude of oil price fluctuations. If we are going to diversify, the revenue commission has identified two veritable sources of income: the solid minerals and agriculture. “Apart from their high potentials in Nigeria, the two sectors are conveniently available in every state and every local government in equal proportion. That means that, unlike oil which is located in about seven states, there is presence of solid minerals everywhere. Every local government and state will benefit from derivation fund.

The commission, for the first time about two years ago, worked out the 13% derivation of solid minerals. “About N15 billion was collected as taxes and royalties from solid minerals and included in the sharing formula as applicable to the 13% of oil revenue. We wanted the states to see the benefits of allowing solid minerals to be developed because they will also earn 13% of whatever revenue that comes out from solid minerals.

That was the main reason why we pursued the diversification of revenue across states and local governments,” the RMAFC acting chairman said. Prodded on the number of states currently benefiting from 13% solid minerals derivation, Abba Gana said most states are benefitting. “Mostly all the states in varying degrees. Some get large, some small, depending on the level or quantity of solid minerals,” he said. Minister of Mines and Steel Development, Dr. Kayode Fayemi had, on assumption of duties, launched a road map for the sector revamp and overhaul.

 

Newtelegraph