A public policy analyst and chieftain of the All Progressives Congress (APC), Bola Babarinde, has urged the federal government to fully integrate Nigeria’s solid minerals sector into ongoing tax reforms.
Mr Babarinde, a former APC chairman, South Africa chapter, in a statement on Friday, cautioned that excluding mining revenues would undermine equity, peace, and national development.
He described the establishment of the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, as timely, given Nigeria’s revenue challenges, rising inequality, and the urgent need for a fair and efficient fiscal system.
“The objective of the tax reform committee is sound—expand the tax net, reduce pressure on low-income earners, and ensure big earners pay their fair share.
“However, a major contradiction has emerged. The solid minerals sector has been largely ignored,” Mr Babarinde said.
He added, “Tax reform without mining reform is reform half done. Peace without economic justice is temporary.”
According to him, Nigeria’s tax base remains narrow despite its population and economic size, with millions of low-income citizens carrying a disproportionate burden, while highly profitable sectors escape adequate taxation.
Mr Babarinde noted that Nigeria is richly endowed with solid minerals across several regions, yet the sector remains poorly regulated and largely informal.
“Powerful local and foreign interests dominate mining activities, often operating illegally, while the Nigerian state earns little or nothing through taxes or royalties,” he said.
He described the situation as not only an economic failure but also a governance failure, citing growing evidence linking illegal mining to insecurity, insurgency, and terrorism in parts of the country.
“Destabilising mineral-rich areas weakens state control, fuels criminal networks, and deprives the government of revenue needed for security and development,” he said.
Mr Babarinde argued that the imbalance in regional resource taxation threatens national cohesion.
He said, “Cash crops in the South-West and oil in the South-South are heavily regulated and taxed for the benefit of the federation.
“In contrast, solid minerals, mostly found in parts of Northern Nigeria, are extracted with minimal transparency and almost no contribution to the national purse.”
He noted that despite their resource wealth, many mineral-rich communities remain among the poorest in the country.
“This imbalance fuels poverty, migration, insecurity, and social strain, particularly in relatively prosperous regions such as the South-West.
“As new tax laws are expected to take effect from January, their success will depend on inclusiveness and political will. A tax reform that excludes mining is incomplete and unjust,” he said.
Mr Babarinde warned that failure to address these disparities could pose long-term risks to national unity.
He cited South Africa as an example of a non-oil-producing country that sustains its economy through a well-regulated and heavily taxed mining sector.
“If South Africa can thrive on mining revenues, Nigeria can achieve even greater results with the right policies and enforcement,” he added.
(NAN)