By SUNDAY ABBA, Abuja
The Nigerian Extractive Industry Transparency Initiative (NEITI) has revealed that the mining sector remitted the sum of N177. 44 billion to government and contributed 0.62 per cent to the national GDP in 2021.
This is contained in the 2021 NEITI Solid Minerals Industry Report presented by the agency’s executive secretary, Orji Ogbonaya Orji, and unveiled by the Secretary to the Government of the Federation, SGF, Senator George Akume, who was represented by the Permanent Secretary, General Services, Maurice Mbaeri, alongside other stakeholders in Abuja on Monday.
In scope, the NEITI report covered 1214 extractive industry companies, who were able to pay royalties in excess of N3 million and above. And three government agencies that are very critical to the particular report, because of their role as gateway to revenue inflow, are the Mining Cadastre Office, MCO, Federal Ministry of Solid Minerals, FMSM, and the Federal Inland Revenue Service, FIRS.
In his presentation before the large gathering of the sectors critical stakeholders, including National Assembly members, civil society groups, etc, the NEITI boss explained that the sector actually generated N193.59 billion in revenue but remitted the N177.44 billion. And according to him, the inflow of revenue to the federal government stood at 2.62% out of the total revenue collection of N6.63 trillion in the year under review
He noted that though the report shows an increase over the performance of the previous year by 16.32 billion or 51.8%, it is nothing to write home about when compared to the rich potential seen in the sector.
“This year is in question, 2021, the whole solid minerals sector generated N193.59 billion only. And in the aspect of financial flows, the only one that went to the federation account was 177.44 billion.
“To us, this is quite low. This signposts that a lot of job needs to be done, at a time when our country is looking for money, going on borrowing while we have solid minerals all over the country.
“When you compare what was generated 2021 with what obtained in the last report, this is higher by 16.32 billion or 51.8%. Well, those in the sector would say, we have recorded increase, but this is abysmally very low, given the potential that we saw in the sector.
“That’s the whole essence of the report – to keep drawing national and international attention to where there is money for the country to utilise for development.
The breakdown of revenue generated shows that FIRS collected169.52 billion as taxes, and MCO yielded 4.3 billion, while the Inspectorate department (of the ministry), 3.63 billion.
“In all of these we still have 1.0 6 billion of outstanding payable by companies, i.e. they’ve not paid.
“So, liabilities to companies mounting from failure of some of them to pay their annual service fees, and for some mineral titles that were given, these monies were due for collection but we do not know why the owners have refused to pay; we’re in 2023 now, and this report is talking about 2021. In the past, until we began to chase them, nobody willingly come to pay, and nobody goes after them,” he said.
The report also contains data on all that the solid minerals sector has contributed to the coffers of government annually for 14 years, i.e. since NEITI began to intervene from 2007 to 2021, whose grand total gives N818.04 billion.
“So as we speak, you have N818.04 billion, that’s what this sector has generated from 2007 to 2021,” he said, adding that such is unacceptable in midst of Nigeria abundant mineral resources and requires policy intervention to plug the loopholes.
According to the report, specific minerals that yielded the money are few, with limestone and granite being the most produced minerals in 2021, accounting for 74.4% of the total production. Clay accounting for about 6.2%, lactrite, 7.8, granite, 27% plus, etc. And all the quantities together for the year gives 76.28 billion tonnes of minerals that were mined in the country.
The total minerals exported from the country 2021 was 143 000 tonnes, valued at $44.83 million. The export destinations included China, Malaysia, Korea, Thailand, UAE.
“What we’re unable to establish is the quantity exported illegally, and it’s is very huge. There is the need to look into that, and it requires policy intervention,” he said.
Dangote Cement, Boar Group, Lafarge, and Zerceberg top the chart of the 2214 companies in the mineral production chart, whose efforts account for a total of 58.61%, while those of all other companies put together account for the rest.
Ogun, Kogi, Edo, Cross River, and the Federal Capital Territory, FCT, topped the state-by-state contribution chart with a total of 66.49 to total volume of production, while the aggregated contribution of the geo-political zones, North Central, South West, South South took the lead, with South East being the bottom.