Nigeria’s potential revenue from solid minerals, according to the Senate’s Committee on Finance, is roughly $3 billion.
According to The Punch, Chairman of the Finance Committee, Senator Sani Musa, stated on Sunday that the informal sector, notably the mining business, is a hidden treasure in our revenue potential.
He also claimed that the Senate Finance Committee will take a close look at the informal sector, which accounts for around 80% of the Nigerian economy. With a focus on mining, the committee will investigate empowering the informal sector.
“This was confirmed by the Ministry of Mines and Steel Development that the solid minerals have the potential to generate approximately 2-3 billion US dollars annually,” he said.
“We will harness and raise revenue sources from both the Blue Marine and Creative Economies by setting targets,” he continued.
“The committee will legislate to encourage consumption and production regulations, facilitate an enabling environment for domestic industries to develop, and stimulate economic growth through direct foreign investment inflows.”
He said: “Maintaining fiscal discipline is critical to our financial health. As the Senate Finance Committee, we will strengthen our commitment to prudent revenue sources, ensuring that every dollar earned is accounted for in order to support our nation’s priorities and development aspirations.”
He also stated that the committee will ensure that the annual budget corresponds with the Medium-Term Expenditure Framework and fiscal strategy paper to establish a coherent roadmap that connects medium-term goals with concrete fiscal plans, and fostering accountability in the efficient utilization of resources.
The Senate Finance Committee also stated that it will provide steadfast support to the Presidential Committee on Fiscal Policy and Tax Reform in its ambitious effort to close the 20 trillion Naira yearly revenue shortfall from non-oil sources and reach an 18% tax-to-GDP ratio.
“In parallel, the Committee reiterates its commitment to legislate on comprehensive tax reforms, a critical step towards augmenting revenue generation and fostering sustainable economic growth,” the legislator added.
“We will assure their openness, accountability, and efficiency through rigorous oversight, optimizing tax collection for national development.”
Musa also stated that certain Ministries, Departments, and Agencies are fiscally reckless and have low revenue profiles.
“As Chairman of the Senate Committee on Finance, I’m very much aware and aware of the economic and developmental challenges our country is facing, including the escalating debt burden, low revenue profile, and fiscal irresponsibility by some MDAs,” he stated.
He claimed that it is common knowledge that the Nigerian economy is at a crossroads, navigating a complex web of economic challenges that necessitate strategic and informed policy responses.
“Against a backdrop of low GDP growth (2.51% in the second quarter of 2023, down from 3.54% in the second quarter of 2022), persistent inflation, high unemployment, a mounting debt profile, and a limited revenue base, the economic landscape necessitates concerted efforts to address structural imbalances and foster sustainable growth,” he concluded.
