Fayemi laments undeclared revenues from Nigeria’s solid minerals

Kayode Fayemi, minister of solid minerals development, has lamented that the audit report on the Nigerian solid minerals industry submitted to his ministry contained hidden revenues that were being generated but not declared or recorded with the appropriate agencies and the ministry.

Fayemi disclosed this Monday in Abuja while interacting with officials of NEITI, who paid him a courtesy call in his office.

According to Fayemi, the important role of NEITI in the promotion of transparency and accountability in the extractive industry serves as a boost to revenue generation in the country.

To him, the NEITI report would assist the solid minerals development ministry to move forward in formulating a policy strategy not just for strengthening the sector, but in ensuring that it lives to its full potential in contributing to Nigeria’s economic development.

Based on current data from the ministry, Nigeria’s solid mineral sector contributes a paltry 0.34 percent to gross domestic product (GDP) at present, amounting to about N400 billion.

“While this is a significant role, it is smaller than its true potential, as the vast majority of our mining assets are yet to be exploited,” Fayemi said earlier in January.

In a related development, the Federal Government has expressed determination to work with the NEITI to develop a clearly defined strategic engagement in information sharing and data to strengthen the solid minerals sector.

The acting executive secretary of NEITI, Orji Ogbnonnaya Orji, said the objective of the partnership was to share information and data that would help the ministry in its ongoing reforms to strengthen the economy through alternative sources of revenue.

He further said that NEITI was fully aware of the global oil glut, as well as its negative economic consequences and the need to look for alternative sources of revenue to alleviate the pressure on the Nigerian economy.