23 September 2017, Sweetcrude, Abuja – The Acting Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr.Shettima Abba-Gana, has said the mining sector was generating less than capacity due to activities of illegal mining, noting that the sector generated only N4.9 billion between 2015 and 2016.
Abba-Gana, who was speaking to reporters in Abuja, said the revenue accrual from the sector was not encouraging and too low.
He said, “RMAFC believes that the revenue from the solid minerals sector is still below 20 percent.This is mainly due to the activities of illegal miners who constitute more than 70 percent 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.”
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.
The RMAFC monitors accruals into the federation account and the disbursement of revenue from it.