Solid Mineral Sector Contributes N52.75bn Revenue In 2017, Says NEITI

'Dotun Akintomide
Writer

Ad

Surprise as Tinubu Overturns NTA shake-up, reinstates Abdullah Dembos, Ayo Adewuyi

By Obinna Uballa President Bola Tinubu has reversed recent leadership changes at the Nigerian Television Authority (NTA), ordering the reinstatement of Director-General Salihu Abdullahi Dembos and Executive Director of News Ayo Adewuyi, triggering surprises in the Broadcast industry. The Special Adviser to the President on Information and Strategy, Bayo Onanuga, confirmed the directive in a…

Chatham House Rebuts Tinubu, Says Corruption Still Crippling Nigeria’s Growth

By Obinna Uballa United Kingdom based policy institute, Chatham House, has countered President Bola Tinubu’s recent claim that his administration has eradicated corruption in Nigeria, asserting that the vice remains deeply entrenched and continues to undermine the country’s economic growth and governance structures. In a new report authored by Dr. Leena Hoffmann, Associate Fellow of…

Ranked: Top Sources of Billionaire Wealth by Industry

Key Takeaways Forbes found finance and investments leads the top sources of billionaire wealth (464 billionaires) in 2025. Technology is the second-most common sector for billionaires (401), adding 59 new names since 2024. The world’s ultra-rich aren’t evenly spread across either the globe or the economy. Instead, their fortunes tend to cluster in a handful of high-growth, high-margin industries. This…

Ad

The Nigeria Extractive Industries Transparency Initiative (NEITI) said the solid minerals sector contributed N52.75 billion to federation revenue in 2017.

NEITI in its latest report on Solid Mineral Sector released  in Abuja, on Sunday said the amount was a 21 per cent increase on the N43.22 billion contributed by the sector in 2016.

The report followed an audit on independent reconciliation of company payments and government receipts in the sector.

Amedu Onekpe & Co, an indigenous accounting and auditing firm, conducted the 2017 solid minerals audit for NEITI.

“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 per cent of the total revenues realised during the period under review.

“ Payments to the Mines Inspectorate Department (MID) and Mining Cadastre Office (MCO) amounted to N1.59 billion and N2.08 billion or about three and four per cent respectively of the total revenue from the sector.

“Except for revenue from MID, there was significant increase in revenue from all other streams in 2017,’’ it added

A breakdown of the revenue flows showed that there has been a very remarkable increase in revenue accruing to the Federation from the solid minerals sector from 2013 to 2017, although 2016 witnessed a decrease of 31.02 per cent compared to 2015.

It added that other revenue flows from the solid minerals, include sub-national payments.

These, it noted were direct payments to states and local governments as a result of national laws, contractual obligations or local regulations which were disclosed as unilateral disclosures by the extractive companies.

“The total payment was ₦2.877 billion representing about 5.45 per cent of total government revenue from the sector,’’ it said.

On production, the report disclosed that 35.33 million metric tons of minerals valued at N32.78 billion was produced in Nigeria during the same period.

It noted that the production data was based on minerals either used or sold during the year.

A breakdown of the production showed that Limestone, Granite and Laterite accounted for 85.72 per cent of the total minerals produced with Limestone alone contributing about 55 per cent of the production volumes.

However, the report indicated that in value terms, Granite and Limestone contributed 37.28 and 35.57 per cent  respectively.

On state-by-state contribution, the report highlighted that Ogun 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 per cent of the total minerals production value.

“ The contributions by Ogun and Kogi states put together accounted for over half of the total production quantity,’’  the report revealed.

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 per cent respectively.

The report also showed that with the exception of the FCT, there was a material decline in states production in terms of both quantity and value.

It noted that 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, it added represented a decline of 15.64 per cent in production volumes and 3.83 per cent in production value in 2017.

The report also revealed that Dangote Cement dominated activities in minerals production in 2017.

The company alone, it said, was responsible for about 46 per cent 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 per cent of the total minerals production quantity and over 60% of the production value”, the report said.

On employment, it said that he sector’s contribution to employment in 2017 was about 0.3 per cent of Nigeria’s total employment, same as the figure recorded in 2016.

The report also affirmed that artisanal and small-scale miners currently dominate the sector.

Ad

X whatsapp