Business Economy

Nigerian mining sector generates N14.9bn in two years – RMAFC

Shettima Abba-Gana, Acting Chairman, Revenue Mobilisation Allocation and Fiscal Commission ( RMAFC ) says the mining sector was generating less than capacity due to activities of illegal mining.

In an interview with the News Agency of Nigeria ( NAN ) Thursday in Abuja, Abba-Gana said the sector generated only N14.9 billion between 2015 and 2016.

He said that the revenue accrual from the sector was not encouraging and “too low’’.

“RMAFC believes that the revenue from the solid minerals sector is still below 20 per cent.

“This is mainly due to the activities of illegal miners who constitutes more than 70 per cent of mining activities and do not pay tax.

“While the price rates of the minerals in the international market keep rising, the rates of the minerals in Nigeria remained constant at lower rates.

“Therefore, if all leakages are blocked, the sector can generate up to N500 billion,’’ he said.

Abba-Gana also said the sector generated N16.2 billion from 2008 until date, adding that the total shared was N9.9 billion with a balance of N6.29 billion left.

He noted that the observed variance/amount in the escrow account was N1.34 billion.

According to him, N1.34 billion is still in the solid mineral Federation Accounts Allocation Committee ( FAAC ) sub-account in the Central bank of Nigeria ( CBN ) awaiting submission of data from Ministry of Mines and Steel Development ( MMSD ) for attribution.

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Ihesiulo Grace

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