• Monday, April 22, 2024
businessday logo

BusinessDay

Nigeria generated N814.59bn from solid minerals in 15 years — NEITI

Sad story of Nigeria’s neglected treasure

The Nigeria government,from 2007 to 2021 earned a total of N814.59 billion from the solid mining sector, Nigeria Extractive Industries Transparency Initiative (NEITI) report has revealed.

According to the report that was launched in Abuja on monday, there has been a consistent year-on-year increase in revenue to the federation account from the solid minerals sector, with N193.59 billion revenue in 2021 being the highest in the past fifteen years.

Read also: Nigeria to tap $37bn market as firm confirms lithium deposits

The N193.59 billion earned in 2021, was an increase of ₦60.32 billion or 51.89 percent growth, when compared to the 2020 revenue flows of ₦116.82 billion.

Presenting the report in Abuja, Executive Secretary of NEITI, Orji Ogbonnaya Orji stated that the 2021 Solid Minerals report reviewed, ascertained, reconciled and reported all revenues and investment flows to and from Government in the solid minerals sector.

According to Orji, the report which is NEITI’s 12th, covered the actual payments by 1,214 companies operating in the sector and receipts by three government agencies, as well as quantities of minerals produced, utilized and exported from the sector.

“This latest NEITI report also looked at balances payable/receivable financial as inflows and tracked funds and utilisation meant for the development of solid minerals in Nigeria.

Read also: Solid mineral, new petroleum for Nigeria, says Alake

“A striking feature in the report shows courageous findings and recommendations expected to shape future policy decisions, yield the desired impact by blocking leakages and growing government revenues if effectively implemented,” he said.

According to the report, the total volume of solid minerals sold in 2021 was 76.28 million tons with a royalty payment of N3.57billion, with granite, limestone, laterite, clay and sand having the largest production volume.

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

A total of 2,045 licenses were issued with exploration licenses accounting for 840 (increase of 62.79 percent), 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, the report stated.

However, the solid minerals contribution to export value in 2021 was a 0.24 percent, The First Patriot Nigeria Limited based in Ebonyi state accounted for 44.26 percent of the total export value.

China was identified as the principal destination of Nigeria’s mineral exports, accounting for 97 percent and 88 percent of the export volume and value. Other destinations for Nigeria’s minerals include Malaysia, Korea, Thailand, UAE etc in that order.

NEITI reported that while there was an increase of 85 percent in the number of artisanal miner’s operators, from 1,273 in 2020 to 2,336 in 2021 across the 6 geo-political zones of the country, there were no commensurate data in the areas of production, royalty payments, exports, to support this increase in operators.

Read also: Under Alake, Nigeria’s solid minerals sector gets a makeover

Similarly, employment data from the sector showed that the sector’s contribution to employment in 2021 was 25,618, with 596 expatriates while 25,022 were Nigerians. In relation to gender, 92 percent of jobs were occupied by men, while women occupied 8 percent.

 

 

 

 

 

Note

•Corrected duration to 15 years from five years.