The Acting Chairman of the Federal Internal Revenue Service (FIRS), Zaccheaus Adedeji has revealed that a calculated investment in the solid minerals sector can significantly boost the Nigerian economy and contribute to GDP growth.
Adedeji said the Federal Government could grow the sector to shore up earnings into the Federation Account.
He made this statement during a visit to the Minister of Solid Minerals Development, Oladele Alake, in Abuja.
Describing solid minerals resource as the golden goose of the Tinubu administration, Adedeji said:
- “This is our next oil and that is why we are here. We are getting it right here. If we get it right, it means the future of Nigeria is secured. We are confident, having Dr. Oladele Alake, as the Minister of Solid Minerals, half of our job is secured.”
Speaking on the sector’s relevance to tax revenue generation, the FIRS chairman said that its highest taxable limit at 18% of the Gross Domestic Product (GDP), is a stark contrast to the declining oil and gas sector, which currently contributes 78%.
What the Minister is Saying
On his part, the Minister of Solid Minerals, Dele Alake, stated that the President’s determination to raise the country to new heights and enhance the well-being of the people is the cornerstone of the administration’s vision and agenda.
At another forum, Alake reiterated the government’s commitment to data gathering on mineral deposits in the land.
He spoke while hosting the President/Chief Executive Officer, of Africa Finance Corporation (AFC), Mr. Samaila Zubairu, in Abuja.
According to the Minister, the solid minerals sector’s transformation into a revenue-generating cornerstone is on Tinubu’s Administration’s agenda list.
Alaba Balogun, the information spokesman for the ministry, conveyed Alake’s appreciation for AFC’s backing of the Tinubu administration’s efforts to revamp the solid minerals sector.
He said,
- “Every effort being made through policies initiatives and programs to make Nigeria a destination for solid minerals will be futile if the nation doesn’t improve on data gathering.
- “We will invest heavily in data generation, concise and precise data generation that will empower and enable investors to make informed decisions.
- “The ministry is committed to developing the necessary data needed to advance the $700 billion value under the ground under the big data strategy. Alake asserted that the present administration decided to shift attention from fossil fuel and its attendant climatic challenges to solid minerals as viable alternatives.”
What You Should Know
The establishment of the Ministry of Solid Minerals is part of President Tinubu’s effort to diversify the economy and expand the country’s revenue landscape and economic development.
According to the Minister of Solid Minerals, the sector is valued at over $700 billion and the country is well-placed to meet the global demand for critical solid minerals.
Alake said this while speaking on the sidelines of the United Nations General Assembly (UNGA) in New York.
He said,
- “Nigeria is endowed with a vast deposit of minerals critical to our new world, Nigeria is well-positioned to play an important role in our new world. Our solid mineral sector is valued at over USD$700bn and we know there is more to be discovered.
- “Endowed with critical minerals, Nigeria should not and dare I say, cannot be ignored.
- “In our new world, mobility requires a new form of energy driven by minerals in our new electric vehicle world.”
- “Technology is more mineral-dependent, our energy source will depend more on the energy converted from the sun and other sources, and energy storage is even more mineral-reliant.”
Seems no one in this government has heard of the Resource Curse. Moving from one resource to another.