Revenue mobilisation :
RMAFC harps on accurate remittances to federation account by mining companies
* Applauds Lagos State government, ministries for cooperation
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), has emphasised the urgent need for mining companies and firms operating in the solid mineral sector to ensure prompt remittances of royalty payments to the Federation Account as required by law.
The Federal Commissioner of RMAFC, Prof Adekunle Wright, made this known, during the visit by his team to Lagos State, as part of their 2022 nationwide monitoring of revenue collections and activities of miners at the State and Local Government Councils.
Prof Adekunle Wright; the Federal Commissioner representing Lagos State on Revenue Mobilisation Allocation and Fiscal Commission,
informed that the Commission is empowered by Paragraph 32 (a) and (c) of the third schedule in 1999 Constitution to monitor accruals into and disbursement of revenue from the Federation Account to sub-national governments.
According to him, the Commission has a statutory mandate to advise the Federal, State and Local Governments on fiscal efficiency and methods by which their revenue can be enhanced.
“By virtue of this mandate, the Commission is empowered to monitor all revenue accruals from the extractive sources (oil, gas & minerals) to ensure prompt and accurate remittances to the Federation Account”, he stressed.
The Federal Commissioner said : “The Commission in pursuant of its mandate, conducted a nationwide exercise in 2016, in collaboration with the Ministry of Mines and Steel Development (MMSD), as well as other key stakeholders to assess the challenges hindering optimum revenue collections from the sector.”
His words : “As a follow-up on the above, the Commission is conducting another exercise whose objectives are; to dialogue with stakeholders on the findings of 2016 exercise, in order to recommend solutions to the observed challenges; verify and reconcile revenue collections in the mining sector, especially on liabilities established by Nigerian Extractive Industries Transparency Initiative (NEITI) in its 2020 Audit Report.
“The major issues of concern to RMAFC in NEITI 2020 report are;
six companies that did not comply with NEITI Audit by failing to provide required data. The material revenue loss of their non-responsiveness was put at N54.25 million. Underpayment of royalty by 25 enterprises that exported minerals in 2019 with no record of royalty payments. These companies owe the government about N482 million in overdue royalty;
The total sum of N2.76 billion outstanding liabilities against 2,119 mining companies nationwide arising from failure to pay the statutory annual service fees”.
Speaking further, Prof Adekunle Wright applauded the government and ministries in Lagos State for their cooperation, seeking collaboration with Lagos State Ministries of Finance, Energy & Mineral resources, Local government/Chieftaincy Affairs, as well as relevant agencies in the State.
He said, the synergy becomes necessary as the Commission is empowered to enforce payment of established liabilities in conjunction with the Ministry of Mines and Steel Development (MMSD).
Our correspondent observed that the Federal Commissioner and his team have been hard working and resilient in carrying out their statutory duty of monitoring revenue collections into the Federation Account, as they move from one State to another, looking at records of revenue remittances by various agencies. The on-going 2022 nationwide monitoring of revenue collections and activities of miners at the State and Local government Councils is the Phase II of their assignment.
Most remarkably, the exercise is expected to improve revenue accruals into the federation account for the benefits of the three tiers of government, to enhance economic growth and development.
The Picture showing Accountant General; Mr Abiodun Muritala, 2nd from right, stood in for the State Commissioner of Finance; and other members of the team, during the on-going exercise in Lagos State