Nigeria’s mining revenue rises by 51% to N193.5 billion in 2021 – NEITI
The Nigerian Government’s efforts to bolster mining revenue received a significant boost, with the Nigeria Extractive Industries Transparency Initiative (NEITI) announcing a record-breaking achievement.
In their recently published 2021 Solid Minerals Industry Report, titled “Impactful Revenue Growth through Leakages Mitigation,” NEITI revealed that the solid minerals sector contributed an impressive N193.59 billion to the nation’s coffers in 2021 alone.
Furthermore, the report highlights the sector’s remarkable journey, indicating that it has contributed a cumulative total of N814.59 billion to Nigeria’s revenue between 2007 and 2021, with 2021 marking a historic high point in earnings.
Minerals
The report was launched by the Secretary to the Government of the Federation (SGF), Sen. George Akume, who was represented by Dr Maurice Mbaeri, Permanent Secretary, General Services Office, SGF.
FG stated that this is the 12th in the series, which covers actual payments by 1,214 companies operating in the sector and receipts from three key government agencies, they added:
- “It covers the quantities of minerals produced, utilised and exported from the sector, reconciles the physical/financial transactions and undertakes special verification on some processes.
51% growth
Dr. Ogbonnaya Orji, Executive Secretary, NEITI, said the figure showed an increase of N60.32 billion or 51.89 per cent growth when compared to the 2020 revenue flows of N116.82 billion.
He added that it also reflects the continuation of the upward positive trajectory observed in the sector over the past five years.
- “This contribution, though a significant increase over past years, is still abysmal considering the potentials of the sector to the Nigerian economy,”
- “The 2021 Solid Minerals report reviewed, ascertained, reconciled and reported all revenues and investment flows to and from the government in the solid minerals sector.
He also noted that the NEITI report also covered balances payable/receivable from financial inflows, and tracked the funds and utilisation meant for the development of solid minerals in Nigeria.
- “The funds include the Natural Resources Development Fund; Solid Minerals Development Fund; Ministry of Mines and Steel Development’s MinDiver Programme and Solid Minerals Development Funds under the Small and Medium Industries Equity Investment Scheme operated through the Bank of Industry.
Revenue breakdown
NEITI revealed through a revenue breakdown that the Federal Inland Revenue Service collected N169.52 billion; the Mining Cadastre Office generated N4.3 billion and the Mining Inspectorate Department generated N3.62 billion.
Meanwhile, the revenue to the federation account from the sector in the past 15 years, which was N818.04 billion was significantly low compared to the economic potential of the sector.
They also added that the total volume of solid minerals used or sold in 2021 was 76.28 million tons 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 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.
- “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 last production volume was recorded in Borno State with 25,500 tons,”.
Licenses
2,045 licenses were issued with exploration licenses accounting for 840 (an increase of 62.79 per cent), Small Scale Mining Leases, 771, Quarry Leases, 255, and Reconnaissance Permit. 139 and Mining leases 40.
Export
NEITI revealed that the total minerals exported in 2021 was 142.54 million tons with a Free on Board value of US$ 101.29 million, an increase of 138.57 per cent from the US$ 42.46 million reported in the 2020 report.
China was the principal destination of Nigeria’s mineral exports, accounting for 97 per cent and 88 per cent of the export volume and value while other destinations for Nigeria’s minerals included Malaysia, Korea, Thailand and the United Arab Emirates.
