A new report by the Nigeria Extractive Industries Transparency Initiative (NEITI) has shown that Nigeria earned a total of N79.9 billion from the solid minerals sector in 2019.
The report, which was presented to the media and civil society organisations by Dieter Bassi, director, technical, NEITI, in Lagos further shows that revenue was 13.02 percent higher than the N69.5 billion realised in 2018, while royalties received increased from N1.96 billion in 2018 to N2.50 billion in 2019 with Dangote Cement contributing 25.40 percent of the royalties received from the sector with a payment of N635.52 million.
While the 2019 report covered 74 entities, this coverage represented an increase from the 69 captured in 2018, while production volume rose to 59.83 million tonnes in 2019 compared to the 40.7 million tonnes recorded in 2018.
On the other hand, the report shows that export volume production in 2019 was valued at 7.09 million tonnes, representing a decrease of 124.75 million tonnes from the 2018 figure, with limestone, granite and laterite appearing as the most produced minerals in 2019, accounting for 55.03 million tonnes.
While Ogun, Kogi and Cross River accounted for 37.92 million tonnes, Ogun recorded 18.65 million tonnes; Kogi, 12.77 million tonnes; and Cross River, 6.50 million tonnes, respectively. Similarly, 61 companies exported solid minerals in 2019 with a focus on China as the principal destination accounting for 95 percent of the solid minerals exported.
The solid minerals sector in 2019 contributed a total of N368.99 billion, depicting 0.26 percent to Nigeria’s Gross Domestic Product (GDP) at N144.210 trillion as of the period.
In the last five years, the sector has contributed to the economy, the report shows, adding that these were not without challenges such as underpayment of royalties and non-payment of taxes by some companies.
The report also identified a lack of effective monitoring and supervision coupled with a slow pace in the development of metallic minerals as causing potential losses in revenue to the government.
Frontpage September 11, 2018