Mining Operators Facing Billions in Unpaid Royalties, Says Minister Alake
The Nigerian mining sector has been rocked by revelations of massive unpaid royalties, with Minister of Solid Minerals Development, Dele Alake, stating that legally operating companies owe the federal government "trillions of naira."
Speaking during a visit from Mohammed Bello, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Alake expressed his dismay at the discovery. "From our initial efforts to curb leakages and recover funds, we have been shocked to find that trillions of naira in royalties and taxes remain outstanding from legitimate operators," he stated.
The revelation comes at a crucial time for Nigeria's mining sector, which has witnessed significant growth in recent years. However, with government revenues under pressure due to economic challenges, the unpaid royalties represent a substantial missed opportunity for development and infrastructure projects.
Alake outlined the ministry's response, including engaging consultants to tackle revenue leakages and recover outstanding funds. Additionally, he announced plans to engage internationally certified auditors to scrutinize the system and implement automation across the revenue collection process.
"We are committed to recovering these lost funds and ensuring transparency and accountability in the mining sector," Alake affirmed. "The automation of revenue collection will be a key step in achieving this goal."
The RMAFC chairman, Bello, echoed Alake's concerns and emphasized the importance of collaboration between government agencies in addressing the issue. "The RMAFC is committed to working with the Ministry of Solid Minerals Development to ensure that all mining operators fulfill their financial obligations to the government," he said.
The news of the unpaid royalties has sparked outrage among citizens and stakeholders, raising concerns about potential corruption and mismanagement within the sector. The government's response will be closely watched, with the success of its recovery efforts crucial to ensuring the sustainable development of Nigeria's mining industry.
