The Minister of State for Mines and Steel Development, Mr Uchechukwu Ogah, disclosed that apart from royalties, the Ministry generates revenue mainly through different Value Added Tax (VAT) collected from mining sites across the nation.
He disclosed this on Tuesday in Abuja during a meeting with delegates of Management and Senior Executive Course 43 participating at the National Institute for Policy and Strategic Studies (NIPSS).
What the Minister said
“People do associate the source of the ministry’s revenue to royalties but this did not only contribute to our revenue. We generate funds from Value Added Tax (VAT) collected from quarries and cement companies. Their VAT constitutes part of our revenue because they are part of mining.
The VAT from limestone is little but all these tax also made up of the revenue, so there are a lot of improvements in revenue generation by the ministry,” he said.
The Minister also added that the Ministry is currently taking the lead on a presidential directive to diversify the nation’s economy due to dwindling crude oil revenue.
“We have not only rejigged our vision and mandate but developed and adopted new reform initiatives and innovative strategies for ensuring optimal performance of the sector,” he added.
What you should know
- Recall that Nairametrics reported that the Minister of State, Mines and Steel Development disclosed last month that the FG had started the development of mineral resources in all 6 geopolitical regions, citing the development of lead/zinc processing cluster in Ebonyi; and other mineral resources development in the region.
- The Minister of Mines and Steel Development, Olamilekan Adegbite, disclosed that the FG is working towards auctioning its bitumen block in the third quarter of this year.