Breaking News

Nigeria Earns N624.45bn From Solid Minerals

The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that over 2,119 companies operating in Nigeria’s solid minerals industry failed to remit the sum of N2.76bn to the coffers of government.

The agency also stated that the sector has contributed N651.55bn to the government’s coffers in the past 13 years.

NEITI, in a statement explained that the companies’ liabilities resulted from their failure to pay statutory annual service fees for respective mineral titles.

It added that 6,010 existing solid mineral titles were valid as of 31st December 2020, while 7,605 mining titles were issued in the industry in the past five years. 

The Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, in the statement explained that the agency was determined to unveil potential revenue recoveries that are awaiting immediate action by the relevant government agencies; especially now that the government is in a desperate search for revenues to finance widening budget deficits.

“It is of interest to NEITI that every kobo counts to reduce government financial burden, and our reports will continue to provide useful information and data on who owes what in the oil, gas and mining sector. This is another impact that our reports will pursue in line with our mandate.” Orji declared. 

He announced that the total revenue contributions from the sector in 2020 rose to N128.27bn, which is an increase of over 54 per cent from the N74.85bn recorded in 2019 despite the COVID-19 pandemic.  

He also stated that N8.89bn was shared to the federating units as solid minerals revenue in 2020.

A breakdown of the figure shows that the Federal government received N4.07bn (45.83 per cent), states and local governments received N2.07bn and N1.59bn (23.25 per cent; 17.92 per cent) respectively while N1.16bn (13 per cent) was recorded as derivation share.

The NEITI Independent Solid Minerals Industry Report tracked and reconciled financial flows in the sector, checked quantities of minerals produced, utilized and exported in 2020.

For instance, it disclosed that 71.1 million metric tons of minerals were produced in 2020.

A breakdown of the total production showed that granite, limestone, sand and laterite were the highest contributors to minerals royalty payments recorded within the period.

NEITI further disclosed that five states of the Federation topped the table, contributing 66 per cent of solid minerals produced in the country that year. The first state is Ogun, followed by Kogi, Cross River, Edo and Bayelsa States. 

About Editor

Check Also

Africa’s richest man under pressure as giant refinery nears production

If all goes to plan, Aliko Dangote, Nigeria’s most successful businessman and the richest person …

Leave a Reply