Senate: Nigeria Has Potential to Generate $3 Billion Annually from Solid Minerals

The Senate’s Committee on Finance has projected that Nigeria could potentially generate around $3 billion from its solid minerals sector. Senator Sani Musa, Chairman of the Finance Committee, emphasized the untapped potential of the informal sector, particularly the mining industry, in contributing to the country’s revenue.

Senator Musa highlighted the committee’s commitment to examining the informal sector, which constitutes about 80% of Nigeria’s economy. The focus will be on empowering this sector, with special attention on mining. He noted that the Ministry of Mines and Steel Development also affirmed the potential of solid minerals to generate an annual revenue of $2-3 billion.

“Our efforts will be directed towards understanding and nurturing this sector through appropriate legislation, with a strong emphasis on formalizing artisanal and medium-scale mining activities,” Senator Musa stated. He emphasized that this strategic approach would not only boost economic gains but also ensure safer and more responsible practices within the sector.

“We aim to tap into revenue sources from both the Blue Marine and the Creative Economies by setting clear targets. Our committee will work on legislation to promote regulations for consumption and production, create a conducive environment through laws to foster domestic industry growth, and attract foreign investments,” Senator Musa added.

Maintaining fiscal discipline was highlighted as a crucial aspect of financial health. The Senate Finance Committee expressed its commitment to prudent revenue sourcing and transparent financial management to effectively address the nation’s development goals.

Senator Musa also underlined the committee’s dedication to aligning the annual budget with the Medium-Term Expenditure Framework and fiscal strategy paper. This alignment would create a cohesive roadmap that bridges medium-term aspirations with practical fiscal plans, ensuring responsible resource utilization.

In support of the Presidential Committee on Fiscal Policy and Tax Reform, the Senate Finance Committee pledged unwavering assistance to address the substantial annual revenue gap from non-oil sources and to achieve an 18% tax-to-GDP ratio.

Senator Musa concluded by stating, “Comprehensive tax reforms will be a priority for us, contributing significantly to revenue generation and sustainable economic growth. We will also exercise stringent oversight over revenue agencies, ensuring their transparency, accountability, and efficiency for optimal revenue collection.”

Addressing the challenges faced by some Ministries, Departments, and Agencies (MDAs) with low revenue profiles, Senator Musa noted that fiscal irresponsibility needs to be addressed. He expressed his determination to lead the committee with innovation and a steadfast focus on securing the nation’s economic prosperity.

Recognizing the complex economic challenges that Nigeria is navigating, Senator Musa highlighted the need for strategic and well-informed policy responses. He cited the lower GDP growth, persistent inflation, high unemployment, mounting debt, and limited revenue base as factors that demand concerted efforts to address structural imbalances and promote sustainable growth.

Senator Musa also extended his congratulations to Mr. Olawale Edun, the newly inaugurated Minister of Finance and Coordinating Minister of the Economy, acknowledging the significant responsibility that comes with shaping Nigeria’s economic trajectory.

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