FG loses N1.3trn in solid mineral revenue annually

The Federal has been losing an estimated revenue of about N1.3 trillion annually from the solid mineral sector, the Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Elias Mbam said.

Mbam who disclosed this Wednesday when he appeared before the House of Representatives Committee on Finance, to defend the Commission’s 2021 budget proposal at the National Assembly Complex, Abuja.

He said the discovery followed, nationwide monitoring exercise for the Solid Minerals Sector aimed at examining royalty collections to the Federation Account for the period 2009 to 2015.

According to Mbam, the analysis of the exercise which is still ongoing was carried out on ten mineral type, namely; Gold, Tin-ore, Coal, Columbite, Kaolin Crude, Lead, Gypsum, Tantalite Crude, Zinc, and Manganese taking into consideration their qualities, quantities and their international value.

He also stated that the Commission recovered the sum of N75 billion from commercial banks, companies, and collecting agencies during the monitoring, verification, and reconciliation exercise on revenue collections and remittances.

The RMAFC Chairman said the Commission in collaboration with Federal Inland Revenue Service (FIRS) in 2020 conducted an exercise on reconciliation and recovery of tax liabilities owed the federation account from 2008 to 2019 by some Federal Ministries, Departments and Agencies (MDAs) States and their MDAs and Local Government Councils from which N79 billion liabilities have been established.

He stated that: “The cost of Governance in Nigeria is very high has continued to be on the increase. This is unsustainable as no country can develop with such a high level of recurrent expenditure. Some of the reasons responsible for this include duplication of agencies of Government with virtually similar functions and responsibilities, corruption, an unlimited number of political appointments, wasteful spending; ghost workers syndrome, etc.

“Recommendations to ensure cost reduction include avoiding unnecessary duplications of Agencies with similar functions, reduction in a number of political appointees to the barest minimum as recommended In the Commission’s remuneration package, strict compliance with approved remuneration packages of officeholders, and ensuring prudent spending of Government funds.”

Mbam also stressed the need for effective operation and management of the Federation Account, saying that the overwhelming powers conferred on the office of the Accountant General of the Federation has failed to yield positive results.

”Currently, the Account is managed by the Accountant-General of the Federation who also doubles as Accountant General of the Federal Government. That does not guarantee checks and balances, transparency and accountability in the operation of the Account. I call for the separation of the office of the Accountant General of Federation and Accountant General of the Federation of Federal Government”, he said.

To minimize the challenges in the petroleum industry, Mbam called for speedy consideration of the Petroleum Industry Bill (PIB) without further delay, as it will go a long way to facilitate the restructuring of Nigerian National Petroleum Corporation (NNPC) and the Department of Petroleum Resources (DPR) to improve the Federation’s revenue and management of the sector.

Responding, Chairman House Committee on Finance, James Faleke asked the Commission to come up with the information regarding the recovery of N75 billion and tasked the Commission on the need to synergize with FIRS to block revenue leakages.

Faleke said: ”You have to come up with the information we’ve requested from you, the one of recovery of 75 billion. Let’s make it clear Chairman, RMAFC is purely extra bridged to mobilize revenue for Nigerians and also very core responsibility is the issue of new revenue formula, if you’re unable to do this core responsibility, then Nigerians will not happy with us.

“Nigerians are saying that the money at the center is too much, nobody lives at the center but in States and LGAs and they expect you as an agency to come up with a proposal to the National Assembly for us to have more money to the Local Governments and States.

“The Federal Government can continue to take up the issue of security and all the rest. Please take this your function as very critical. If by next year we are not getting anything towards you bringing up a new bill this committee might be forced not to consider your budget.”