NEITI: Nigeria makes N52.8bn in a year from solid minerals.

On Sunday. The Nigeria Extractive Industries Transparency Initiative  (NEITI) reported during its latest report released in Abuja that Nigeria gained N52.75 billion in 2017 from the solid mineral industry, up 21% compared to N43.22 billion in 2016.

NEITI reported that, out of its total revenue contribution of N52.75 billion, payments to the Federal Inland Revenue Service (FIRS) amounted to $N49.162 billion in the financial report of its 2017 Solid Minerals report in Abuja (CIR), with the signing of a statement by Dr Orji Ogbonnaya Orji, the Director of Communications & Advocacy.

N1,59 billion and N2,08 billion Payments are made to the Mines Inspectorate Department (MID) and to the Mining Cadastre Office (MCO), or roughly 3% and 4% of the total sector revenues.

As said by NEITI, “Statistical analysis of the revenue streams revealed that from 2013 to 2017 there was a very significant increase in the Federal solid minerals revenue, although 2016 saw a reduction of 31.02 per cent in comparison with 2015. Solid minerals revenue flows also included sub-national payments, based on the NEITI report.

Direct payments by national legislation, contractual obligations or local regulations, which are announced unilaterally by extractive corporations, are to States and local governments.

In 2017, NEITI produced 35,33 metric tons of N 32,33 million metric tonnes, of which N32,78 million tons were made during the same year, emphasizing that mineral production data was focused on either mineral use or sale throughout the year. “Total payment was N2,877 billion, that is, 5,45 per annum of government total revenue from the industry.”

The NEITI estimate that 85.72 per cent of the total minerals produced out of limestone alone represented about 55 per cent of the production volumes of limestone, granite, and laterite while adding that, on the level of price, granite and limestone contributed  37.28 per cent and 35.57 per cent, respectively.

NEITI also disclosed that in 2017 Dangote Cement dominated mineral production and that the total production of these minerals amounted to approximately 46%.

The four main actors in this sector have produced over 27 million tons of minerals together, which constitute 77.31 per cent of the total production of minerals, and over 60 per cent of production flow, according to NEITI. NEITI also has Lafarge Cement Plc, CGC Nigeria Limited and Julius Berger Plc.

NEITI complained that there was no industry-specific fiscal regime which made it difficult to tie the solid mineral industry’s income flows to the account of the federation.

The organization said that attempts to measure Nigeria’s GDP contribution from the solid mineral sector, currently at the current core price of N113,72 trillion, are equally affected by growth.

“Nevertheless, the report highlighted that the sector’s contribution to GDP was an abysmal 0.11%, showing a decline of 0.01% and 0.02% from the figures of 0.12% in 2015 and 0.13% in 2016,” NEITI reported.

With regard to NEITI’s contribution to exports in the solid minerals market, some N13,60 trillion tons with solid minerals contributing N77,23 trillion, which represents approximately US$29.90 million, were exported in 2017, adding that Nigeria’s overall exports are approximately N13.60 trillion.

“During the year under review, China is the main export destination of Nigeria. 68 per cent of the total export value during the year was expressed by the state. Malaysia, Vietnam and India are also destinations.”

In relation to state-by-state contributions, NEITI said “the study emphasized that in terms of quantity and quality, Ogun State provided the highest amounts of minerals.

The state accounted for more than one-quarter of the total quantity of production and 23% of the total value of production of minerals.

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