The Federal Government (FG) earned N818 billion from the extractive and solid mineral sectors in 15 years (2007–2021), the Nigerian Extractive Industry Transparency Initiative (NEITI) has revealed.
This was even as it put the total sum of revenue generated from the sector in 2021 at N193.59 billion.
The Executive Secretary, NEITI, Dr Orji Ogbonnaya, who disclosed while presenting the 2021 Solid Minerals report in Abuja on Monday, said the report observed a consistent year-on-year increase in revenue to the federation account from the solid minerals sector within the period
He said the total amount made in the sector in 15 years was significantly low compared to the economic potential of the sector.
Of the total N193 billion in revenue earned in 2021, Ogbonnaya lamented that it contributed less than 1% to the national GDP, accounted for 2.62 per cent of total revenue, and 0.24 per cent of total exports.
In a breakdown, the Federal Inland Revenue Service (FIRS) collected the bulk of the revenue of N169.52 billion, the Mining Cadastre Office generated N4.3 billion, and the Mining Inspectorate Department generated a total of N3.62 billion.
“While there has been some improvement, compared to previous years, the sector has not yet reached its full potential in making a significant impact on the overall Nigerian economy,” he noted.
As of 2021, Ogbonnaya said a total of 1,214 companies were operating in the sector, out of which 914 paid royalties while 300 had no production, hence “no royalty payments”.
He noted that out of the 914 companies that paid royalties, only 121 met the materiality threshold.
“This percentage is low compared to the number of companies operating in the sector,” he said.
On Production, the solid minerals audit report disclosed that the total volume of solid minerals used or sold in 2021 was 76.28 million tonnes, 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 tonnes. Bua and Lafarge accounted for 8.4 and 4.3 million tonnes, respectively, while Zeberced accounted for 3.3 million tonnes.
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