NEITI seeks reforms in solid minerals sector, berates poor earnings

The Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed that the Solid Minerals sector requires a robust fiscal regime built on comprehensive reform to expand the revenue generation base for the nation.

The Acting Executive Secretary, NEITI, Orji Ogbonnaya Orji, who stated this during a courtesy visit to Minister of Solid Minerals Development, Kayode Fayemi, called on the ministry to commence a comprehensive programme for the mining industry in the phase of the collapse of oil prices.

Orji explained that from the scoping study conducted and series of independent oil reports by NEITI, the solid minerals sector had contributed poorly to national purse in recent years and therefore requires extensive reforms to bolster activities in the industry.

According to him, the NEITI reports indicated that, “the sector reforms should include periodic review of royalty rates to conform with market prices encouraging companies to declare accurately what they earn for accurate tax computation, as well as a progressive policy approach that guarantees legitimacy to artisanal miners that dominate the sector.

Orji, according to a statement signed by the Acting Director, Communications, NEITI, Mrs. Obiageli Onuorah, identified artisanal miners whose activities attract zero revenues to government at the moment as major sources of revenue loss in the sector.

Orji however assured that NEITI is prepared to work with the Ministry of Solid Minerals Development especially in the sharing of information and data to support the reforms.

He lamented that a situation where the solid minerals sector with all its potentials generated only N113 billion to the government coffers between 2007 and 2012 was not good enough.

From the NEITI reports presented to the minister at the meeting, “Solid Minerals contributed only N8 billion in 2007, N9.5 billion in 2008 and N19 billion in 2009.A further breakdown also shows that the sector contributed N17.4 billion to the government receipt in 2010, N26.9 billion in 2011 and N31.5 billion in 2012 amounting to about N113 billion”.

The Acting Executive Secretary also expressed concern that the solid minerals contribution to the Gross Domestic Product (GDP) was only 0.6 per cent in 2012 as against 14 per cent by the oil and gas industry.

He underlined the urgent need to shift attention from the country’s dependence on oil to the solid minerals.

The Minister of Solid Minerals Development, Kayode Fayemi, assured that the findings and recommendations of NEITI would be integrated into the policy reform agenda being developed for the solid minerals sector.

Fayemi described NEITI’s visit as timely and commended the quality of NEITI reports in the extractive industries.

He disclosed that some of NEITI’s recommendationsare already part of the action plan of the ministry. The minister welcomed NEITI’s pledge to work with his Ministry and gave the assurance that NEITI finding and recommendations will be integrated in the reforms of the sector to be unveiled soon.

Source: Guardian Newspaper.