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

The Senate’s Finance Committee has highlighted the potential for Nigeria to generate approximately $3 billion from its solid minerals sector. Senator Sani Musa, Chairman of the Finance Committee, emphasized that the nation’s informal sector, especially the mining industry, holds significant untapped revenue prospects.

Senator Musa affirmed that the committee would focus on the informal sector, which constitutes about 80 percent of Nigeria’s economy, with a particular emphasis on empowering the mining industry. He cited the Ministry of Mines and Steel Development, which confirmed the capacity of solid minerals to yield an annual revenue of $2-3 billion.

The committee’s primary objective is to cultivate and support this sector through well-crafted legislation that emphasizes formalizing artisanal and medium-scale mining activities. By doing so, the committee aims to not only achieve economic gains but also promote safer and more responsible mining practices.

Senator Musa stated, “Our efforts will extend to tapping revenue potential from both the Blue Marine and Creative Economies by establishing targets. Through legislation, we will encourage regulations in production and consumption, create a conducive environment for domestic industries, attract foreign direct investments, and stimulate economic growth.”

Maintaining fiscal discipline remains crucial for the country’s financial well-being. The Senate Finance Committee is dedicated to sourcing revenue responsibly, ensuring proper accountability for all earnings. This approach aligns with the nation’s priorities and development objectives.

The committee also plans to synchronize the annual budget with the Medium-Term Expenditure Framework and fiscal strategy paper. This strategy aims to create a coherent roadmap, bridging medium-term aspirations with tangible fiscal plans, and promoting transparent resource utilization.

Additionally, the Senate Finance Committee pledges its unwavering support for the Presidential Committee on Fiscal Policy and Tax Reforms. This ambitious initiative aims to address the substantial annual revenue gap from non-oil sources, striving for an 18 percent tax-to-GDP ratio.

Senator Musa affirmed, “Simultaneously, we are committed to enacting comprehensive tax reforms, a pivotal step in enhancing revenue generation and fostering sustainable economic growth. We will also rigorously oversee revenue agencies to ensure transparency, accountability, and efficiency in revenue collection, thereby contributing to national development.”

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