Dr Kayode Fayemi

The Federal Government is set to commence comprehensive investigation of revenues from the mining sector from 2012 to date with a view to ascertaining gaps and underpayments by operators in the last six years.

Minister of Mines and Steel Development, Dr. Kayode Fayemi, disclosed this at the National Council on Mining and Mineral Resources Development (NCMMRD) meeting in Abuja on Thursday, saying that government would enforce mining laws and regulations of the country, in line with international standard.

“We are starting in the ministry, a revenue management drive that will enable us to do backlog audit for the last six years of the gaps and under-payments that clearly had been the bane of this sector, over the last few years,” he said.

Fayemi also said the ministry, in a bid to stem illegal trading of minerals, had registered over thirty Mineral Buying Centres across the country and enacted the Revenue and Reporting Compliance Agreement with the Nigeria Customs Service, which, according to him had improved the policing of mineral exports.

The minister praised the Nigeria Security and Civil Defence Corps (NSCDC) and the Nigeria Police Force for their support in fighting illegal mining and providing mines security.

“For the first time in 30 years, the Mines Police have been established. Those who have been involved in mining in the past would remember that we used to have the mines police headquarters in Jos.”

Speaking further, the Minister noted that the ministry had recorded a major breakthrough in funding and in providing access to capital and financing to artisanal and small scale miners.

“Already, we achieved a 300% increase in revenue (royalties and fees) between 2015 and 2016, and as at July of this year, the sector had already surpassed the entire revenue of N2Billion generated for the whole of 2016.” he said.

Fayemi identified the signing of a ‘Modified Concession Agreement’ between the Federal Government and Global Infrastructure Nigeria Limited, which resolved the protracted litigations surrounding the ownership of Ajaokuta and NIOMCO, as one of the major achievements of the ministry.

“ The implication of the signing is that ownership of Ajaokuta Steel Company Limited has now reverted to the FGN, and we can now proceed to engage a new core investor with the financial and technical capacity to run the steel complex. The operationalisation of ASC will provide the needed inputs to support the infrastructure requirements of the country and lead to import substitution, and save the country about 3.3 billion dollars annually spent on the importation of steel products.

“To stem the illegal trading of minerals, the ministry has registered over thirty Mineral Buying Centres, and enacted the Revenue and Reporting Compliance Agreement with the Nigeria Customs Service, which has improved the policing of mineral exports.

“With the successful hosting of the inaugural edition of the NCMMRD, we have covered a major milestone in the implementation of the Roadmap for the sector, and at the same time set in motion a chain of positive outcomes. As we look to the future, we remain focused on working with stakeholders to deliver on all other provisions of the Roadmap. He added.

The inaugural meeting was also attended by the Governor of Kebbi State, Abubakar Atiku Bagudu; Minister of FCT, Mohammed Bello; Minister of State for Mines and Steel Development, Abubakar Bawa Bawari; Minister of State for Works, Power and Housing, Mustapha Baba Shehuri; Gwom Gwom Jos, Da Jacob Gyang Buba; the Ohinoyi of Ebiraland, Alhaji Dr Abdul Rahman Ado Ibrahim, members of the National Assembly, state commissioners and permanent secretaries of Mining ministries and representatives of international agencies.