The solid minerals sector contributed N52.75 billion to federation revenue in 2017, a 21% increase on the N43.22 billion contributed by the sector in 2016. 

The information and data followed an independent reconciliation of company payments and government receipts in the sector by the Nigeria Extractive Industries Transparency Initiative (NEITI) in its latest report released in Abuja. 

Details: According to the report obtained by Nairametrics, from the sector’s total revenue contribution of N52.75billion, payments to the Federal Inland Revenue Service (FIRS) accounted for N49.162 billion which is about 93% of the total revenues realized during the period under review. Also, payments to the Mines Inspectorate Department (MID) and Mining Cadastre Office (MCO) amounted to N1.59billion (3%) and N2.08 billion (4%) of the total revenue from the sector.  

READ MORE: Financial market data gulps $28.5 billion from stakeholders – NSE 

According to NEITI, there has been a very remarkable increase in revenue accruing to the Federation from the solid minerals sector from 2013 to 2017, though 2016 witnessed a decrease of 31.02% compared to 2015. Other revenue flows from the solid minerals include sub-national payments. These are direct payments to states and local governments as a result of national laws, contractual obligations or local regulations which are disclosed as unilateral disclosures by the extractive companies.  

On production, the NEITI Solid Minerals Report disclosed that 35.33 million metric tons of minerals valued at N32.78 billion was produced in Nigeria during the same period. A breakdown of the production showed that Limestone, Granite and Laterite accounted for 85.72% of the total minerals produced with Limestone alone contributing about 55% of the production volumes. However, in value terms, Granite and Limestone contributed 37.28% and 35.57% respectively. 

On state-by-state contributionOgun State produced the highest quantity of minerals in terms of both volume and value.  The state accounted for over one-third of total production quantity and 23% of the total minerals production value. The contributions by Ogun and Kogi states put together accounted for over half of the total production quantity. A further analysis showed that the two states led in Limestone as major minerals produced in the states. However, in terms of production value, Ogun, FCT and Kogi states accounted for 23%, 20% and 18% respectively. 

READ ALSO: Top 10 states in Nigeria with the highest Internet subscribers 

FCMB ads 300 x 250

A review of minerals production by states also shows that with the exception of the Federal Capital Territory, there was a material decline in states production in terms of both quantity and value. Total production quantity decreased from 41.87million metric tons valued at N34.09billion in 2016 to 35.33 million metric tons valued at N32.78billion in 2017. The figure represented a decline of 15.64% in production volumes and 3.83% in production value in 2017.  

On Industry PerformanceDangote Cement dominated activities in minerals production in 2017. The company alone was responsible for about 46% of the total minerals production that year.  Other big players in the sector included Lafarge Cement Plc., CGC Nigeria Limited and Julius Berger Plc.  The four companies produced over 27 million tons of minerals, representing 77.31% of the total minerals production quantity and over 60% of the production value.  

Standard chartered

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.