The need for adequate tax mobilization and monitoring of Nigeria’s mining industry to ensure increment of revenue generation and the nation’s fiscal actions have been re-echoed by the Civil Society Legislative Advocacy Centre (CISLAC).
While reiterating the statutory mandate of the NGO as transparency and accountability during a courtesy call on Minister for Mines and Steel Development Arc Musa Mohammed Sada in Abuja, Executive Director of CISLAC, Mr. Auwal Ibrahim Musa (Rafsanjani) said his outfit has been at the fore front of advocating for inclusion of solid mineral in the Nigeria Extractive Industrial Transparency Initiative (NEITI) Report to ensure the sector properly harnessed and contribute positively to the economy.
He expressed regret however, that Nigerians were unaware of the tax policy and procedure being followed by the government to generate revenue from the sector and noted that as a result of tax leakages and illegal mining, the nation lost untold amount of money to crook miners.
“We have observed prevalence of foreign players buying solid minerals off artisans and small scale miners and illegal miners creating room for revenue leakages, inaccurate transaction records; discouraging value addition and multiplier economic benefit” he remarked.
“Having succeeded in the inclusion of solid mineral in NEITI Report, CISLAC observed that royalty payments were made by companies without adequate details of quantity produced or mined. Leakages in export of Ore ($15.2 million) without royalty payments have resulted in the loss of N70.3 million’’ Awal hinted.
Responding, the Minister said judicious harness of solid minerals in the country was of cardinal importance to the economic wellbeing of the people and the nation.
Sada declared that that 80 percent of mining are carried out by artisanal and small scale mining companies that deals mainly with illegal miners and so commended the advocacy work of CISLAC.
Already, a proposal submitted to the Ministry of Finance for approval of a fiscal policy regime for the sector by the Ministry of Mines and Steel Development was at the verge of approval to correct the irregularities prevalent in the mining sector.
In addition Sada said his team had resolved to meet President Goodluck Jonathan on the need to constitute a mining task force comprising Nigerian Police, Civil Defence, Nigerian Custom Service and other relevant security agencies to combat the illegalities.
The ministry had also started the process of establishing the Buying Centre for mineral resources in a bid to increase the revenue generation.
Sada asked for further collaboration with CISLAC especially in areas of advocacy and dialogue with mining host communities in abiding with the existing Framework for Community Development as set out by the ministry.
