RMAFC: 25 companies in mining sector owe FG N482m royalties

The Revenue Mobilisation and Fiscal Commission (RMAFC) says it is verifying and reconciling revenue collections in the mining sector.

Hassan Mahmud, commissioner, RMAFC, said this on Thursday at a meeting on the commission’s 2022 nationwide monitoring of revenue collections of the Nigerian mining sector in Kaduna.

Mahmud said 25 companies in the sector are owing about N482 million in royalties due to the government.

However, he did not provide the names of the companies.

According to Mahmud, the commission was empowered to monitor all revenue accruals from the extractive industries to ensure prompt and accurate remittances to the federation account.

He further said the monitoring was a follow-up of the 2016 exercise to assess the challenges hindering optimum revenue collection from the sector, adding that 

Mahmud said the monitoring comprises revenue collections and the activities of miners in the state and local government councils – phase II.

He added that there would be a dialogue with stakeholders on the findings of the 2016 exercise with a view to recommending solutions to the observed challenges.

According to him, the major issues of concern to the commission in the NEITI 2020 report, are the six companies that did not comply with the NEITI audit and failed to provide any data.

Mahmud further said the revenue loss of the non-responsive companies was put at N54.25 million, and the number of defaulting companies will be determined after engagements.

“There is also the issue of underpayment of royalty by 25 enterprises that exported minerals in 2019 with no record of royalty payments,” he said.

“These companies owe the government about N482 million in overdue royalty.

“There is equally the issue of N2.76 billion outstanding liabilities against 2,119 mining companies nationwide, which arose from the failure to pay the annual service fees for their respective mineral titles.”

Mahmud also said the commission’s mandate in the extractive sector was to recover the established liabilities owed to the federation account.

On his part, Muhammad  Sa’idu, commissioner for finance in the state, said there was a need to address the enormous challenges of dwindling oil prices, drop in government revenues, COVID-19, insecurity and other barriers.

He also said sourcing for a quick alternative to all income was necessary and could not be overemphasized.

“Government revenue inflows will surely be boosted if this sector is vigorously harnessed,” he said.

Sa’idu added that the state government, under the current administration, had initiated a strategic mineral development plan to exploit the solid minerals sector hence the establishment of the Kaduna Mining Development Company.