Connect with us


FG Earns N193.6BN from Solid Minerals in 2021



Solid Minerals

By Umar Suleiman

The total revenue generated by the solid minerals sector in 2021 stood at N193.59bn representing an increase of 51.89% from the N116.81 billion generated the previous year 2020, Dr. Orji Ogbonnaya Orji, the Executive Secretary, Nigerian Extractive Industry Transparency Initiative (NEITI) has said.

Ogbonnaya Orji gave the figure during the release and public presentation of the NEITI 2021 solid minerals industry report in Abuja on Monday.

The report covered factual payments made by 1,214 companies covered by the exercise in the sector and receipts by three key government agencies namely the Federal Inland Revenue Service (FIRS), The Mining Cadastre Office and the Mining Inspectorate Department of the Ministry of Mines and Steel Development.

Dr. Orji further gave a breakdown of the revenues which shows that the FIRS collected bulk of the revenue of N169.52 billion, the Mining Cadastre Office generated N4.3 billion the Mining Inspectorate Department generated a total of N3.62 billion.

The report also observed a consistent year-on-year increase in revenue to the federation account from the solid minerals sector in the past fifteen years (2007-2021).

It puts the total revenue that accrued to the government during these years to N818.04 billion, which is considered significantly lower compared to the revenue potential of the sector.

For instance, the sector barely contributed a paltry 2.6% to N6.62 trillion total revenue rakes in by government in 202.

On Production, the report disclosed that total volume of solid minerals used or sold in 2021 was 76.28 million tons with a royalty payment of N3.57 billion.

The minerals with the largest production volume in the year under review are Granite, Limestone, Laterite, Clay and Sand.

Dangote Plc accounted for the highest production in the year under review with a total production of 28.8 million tons. Bua and Lafarge accounted for 8.4 and 4.3 million tons while Zeberced accounted for 3.3 million tons respectively.

The NEITI report also further pointed out that Ogun state recorded the highest production in the year under review, with a total of 17.5 million tons followed by Kogi state with 16.3 million tons and Edo with 8 million tons.

The lowest production volume was recorded in Borno State with 25,500 tons.

NEITI also noted that there were increases in the number of licenses issued within the period.

It said a total of 2,045 licenses were issued with exploration licenses accounting for 840 (an increase of 62.79%), Small Scale Mining Lease (SSML) 771, Quarry Lease 255, Reconnaissance Permit 139 and Mining leases 40.

On Export, the total minerals exported in 2021 was 142.54 million tons with a Free on Board (FOB) value of $101.29 million, showing an increase of 138.57% from the $42.46 million reported in 2020 report.

However, the solid minerals contribution to export value in 2021 was a mere 0.24%.

The First Patriot Nigeria Limited based in Ebonyi state accounted for 44.26% of the total export value. China was identified as the principal destination of Nigeria’s mineral exports, accounting for 97% and 88% of the export volume and value.

Other destinations for Nigeria’s minerals include Malaysia, Korea, Thailand UAE etc in that order.

The report explained that Solid minerals export facilitates international trade and stimulates domestic economic activities by creating employment, enhancing production and increasing revenue generation and so should be encouraged.

On solid minerals contribution to the economy, the NEITI report revealed that the solid minerals sector contributed 0.63% to GDP.

While there has been some improvement compared to previous years where it contributed 0.45% in 2020 and 0.26% in 2019, the sector has not yet reached its full potential in making a significant impact on the overall Nigerian economy.

Dr. Orji used the opportunity to appeal to state and non-state actors to take seriously the contents of the NEITI reports and play their expected roles in the EITI/NEITI process.

According to him, the civil society and media play very important roles in the EITI process, particularly, in the areas of dissemination, campaigns and advocacy on the implementation of the recommendations contained in the report and support the translation of the contents of the NEITI reports to visible impacts in the lives of all Nigerians.

The report was by Amedu Onekpe and Co Chartered Accountants, an indigenous firm and is expected to guide policymakers in making quality decisions in the ongoing reforms in the sector.

Speaking at the unveiling, the Speaker, the House of Representatives, Tajudeen Abass, represented by Awaji-inombek Abiante, Chairman House Committee on Urban Development, described the report as being key to sanitizing the extractive sector in order to boost job creation and revenue generation.

He noted that the extractive sector was plagued by mismanagement of revenue accruing from it, even as he extolled the fifth assembly that helped empower NEITI to help improve the sector

He assured that the report will be distilled and interrogated to the benefit of Nigeria.

In his goodwill message, Osita Ngwu, the Chairman, Senate Committee on solid minerals, hoped that the report will contain recommendations that will help deal with economic saboteurs short-changing Nigerians.

Also speaking, the Chairman, House Committee on solid minerals, Gaza Jonathan Gbefwi tasked NEITI to urgently launch investigations to determine the actual amount of solid minerals extracted and exported in the country as against the amount merely reported.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You have not selected any currencies to display