•says energy transition may drive increased demand for minerals
Nigeria exported a total of 142,537,480 tons of solid minerals with a free-on-board (FOB) value of $101.3 million, the 2021 audit report of the sector has revealed.
Top on the list of export destinations is China which accounted for 95% and 88% of the total export volume and value respectively.
“Solid minerals export facilitates international trade and stimulates domestic economic activities by creating employment, enhancing production and increasing revenue generation. Particularly, in the year under review, metallic minerals were exported in large quantities to foreign destinations, mainly China,” it said.
The newly released report revealed that lead ores and concentrates was the highest mineral exported in 2021, which accounted for 7.7% of the total export and 35.3% of FOB value.
This was followed by Zinc ore, accounting for 15.6% and 33% respectively while manganese ore accounted for 44% and 7%.
However, a comparative analysis of the export data of the Nigerian Customs Service (NCS) and Mines Inspectorate Department (MID) showed that out of 47 identified minerals, there was a variance of 38,145,850 tons.
In a breakdown, while the NCS posted export data of 143 million tons, the MID recorded 104.4 million tons, hence the difference.
It attributed the variance to non-collaboration between the NCS and the Ministry of Mines and Steel Development, thus “leading to some companies exporting without obtaining relevant permits from the MMSD.”
NEITI warned that if allowed to fester, the non-collaboration would further lead to companies exporting without payment of applicable royalties especially as the sector was not generating revenue optimally.
Meanwhile, the report identified seven major minerals as strategic, namely; Gold, Coal, Bitumen, Limestone, Lead/Zinc, Iron Ore and Barites.
“These minerals are considered as minerals with high potential to diversify the economy, boost revenue earnings and sustainable development,” it said.
On the other hand, the report stated that the transition to renewable energy sources, such as Solar and wind power, would likely lead to an increased demand for specific minerals like cobalt, lithium, nickel, and copper.
It said the minerals are essential components in energy storage technologies like batteries and electric vehicle production.
While stressing the importance of essential minerals in the transition to cleaner energy, it said: “This transition relies on essential minerals like copper, lithium, nickel, cobalt, and rare earth elements for clean energy technologies such as wind turbines, solar panels, electric vehicles, and batteries.
“As clean energy deployment increases, the energy sector becomes more interconnected with the minerals and metals industry, solidifying the link between minerals and clean energy.”
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