Revenue Mobilisation Commission tasks mining companies on accurate remittances to federation account
* Lauds ministries in Lagos State for outstanding cooperation
(By Silas Onuoha)
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), deserves commendation for working assiduously in monitoring revenue collections and remittances into the federation account for the benefits of the three tiers of governments.
Our reporter gathered that Just few weeks after its national assignment in Zone ‘C’ Unit of Nigeria Customs Service, covering Port Harcourt and other Commands, the Commission is already in Lagos State to monitor remittances by mining companies.
Speaking during the opening exercise in Lagos, the Federal Commissioner, Prof Adekunle Wright, representing Lagos State on Revenue Mobilisation Allocation and Fiscal Commission,
urged mining companies and firms operating within the solid mineral sector to ensure prompt remittances of royalty payments to the Federation Account.
Prof Adekunle Wright, said their visit to Lagos State is part of their 2022 nationwide monitoring of revenue collections and activities of miners at the State and Local Government Councils.
The Federal Commissioner
explained : “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”.
He stated emphatically that the Commission also has a statutory mandate to advise the Federal, State and Local Governments on fiscal efficiency and methods by which their revenue can be enhanced for optimum economic prosperity.
His assertion :
“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 remittance to the Federation Account”.
He went on :
“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.”
He spoke further :
“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”.
In the same vein, Prof Adekunle Wright
commended the government and ministries in Lagos State for their outstanding cooperation, even as he sought collaboration with Lagos State Ministries of Finance, Energy & Mineral resources, Local government/Chieftaincy Affairs and relevant agencies in the State.
To him, the partnership becomes imperative, as the Commission is empowered to enforce payment of established liabilities in conjunction with the Ministry of Mines and Steel Development (MMSD).
Impressively,
the monitoring exercise by RMAFC is expected to improve revenue accruals into the federation account for the benefits of the nation’s economy.
Picture taken during the opening exercise in Lagos; Accountant General; Mr Abiodun Muritala, 2nd from right, represented the State Commissioner of Finance and other members of the team .
