Kaduna govt to explore revenue potential of solid minerals

The Kaduna State Internal Revenue Service (KADIRS) says it is partnering with relevant stakeholders in the mining sector to mobilise revenue from solid minerals and other natural resources in the state.

The Executive Chairman of the service, Dr Zaid Abubakar, stated this at a one-day engagement with stakeholders from the mining sector in Kaduna on Tuesday.

Abubakar explained that the engagement was to strengthen collaboration with actors in the mining sector to increase revenue mobilisation for the state.

He described the sector as one of the “untaxed” sectors in the country with the potential to generate between N450 million to N500 million for the state annually.

He noted that although mining was on the exclusive list, there were still areas for the state government to work with the Federal Government to generate revenue.

Abubakar said that a careful study of the sector revealed that the state government could generate revenue from the sector.

He identified some of the revenue lines as road taxes, surface rent on titles, Direct Assessment, Pay-As-You-Earn and title registration, amongst others.

“As part of revenue mobilisation efforts, we are gathered here today to discuss ways of collaborating with stakeholders in the mining sector to harness the revenue potential of natural resources.

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“Kaduna state like most states in the country is endowed with numerous natural resources that have attracted foreign and local investments.

“However, there is the challenge of tax evasion like other sectors which hampers revenue mobilisation.

“It is, therefore, very imperative that stakeholders understand the intricate workings of the sector to optimally mobilise the needed revenue from it,” he said.

Also speaking, Dr Mohammed Usaini, Managing Director, Kaduna Mining Development Company, said that mining held the ace for economic diversification in the country.

Usaini pointed out that the sector and its enormous potential was not fully developed for the state to reap its full benefits.

He added that the engagement was part of the state government efforts to develop the sector.

He also acknowledged that the regulation, control and ownership of the mining sector was vested with the Federal Government, saying that the best way to tap from its potential was to go in as an operator.

“This is why Kaduna State established the mining company to expand its economy to generate the needed revenue to fund development projects.

“We have acquired about 40 lucrative licences in gold, lithium, nickel and tin ore, amongst others, which has drawn the attention of international and national companies that partnered with us.

“So far, we have seven joint venture agreements that have culminated into five joint ventures companies,” Usaini said.

SourceNAN
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