FG earns N52.7bn from solid minerals in one year

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The solid minerals sector contributed N52.75bn to the revenue of the federation in 2017, a 21 per cent increase on the N43.22bn contributed by the sector in 2016, the latest report on the industry released by the Nigeria Extractive Industries Transparency Initiative on Sunday stated.

According to the report, the information and data followed an independent reconciliation of company payments and government receipts in the sector as carried out by NEITI.

From the sector’s total revenue contribution of N52.75bn, payments to the Federal Inland Revenue Service accounted for N49.162bn, which was about 93 per cent of the total revenue realised during the period under review.

Payments to the Mines Inspectorate Department, and Mining Cadastre Office amounted to N1.59bn and N2.08bn or about three and four per cent respectively of the total revenue from the sector.

NEITI, however, stated that except for revenue from MID, there was significant increase in revenue from all other streams in 2017.

It said, “A trend analysis 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, though 2016 witnessed a decrease of 31.02 per cent compared to 2015.”

Other revenue flows from the solid minerals sector 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.

“The total payment was N2.877bn, representing about 5.45 per cent of total government revenue from the sector,” NEITI stated.

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

It stated 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.

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