Mining firms owe N1.06bn
…Dangote, Bua, Lafarge top contributors’ list
NEITI in the 2021 Solid Minerals Industry Report unveiled yesterday in Abuja, said 1,214 companies were covered in the audit with actual financial flow into the Federation Account placed at N177.44 billion.
A breakdown of the revenue into the Federation Account showed that Federal Inland Revenue Service, FIRS, generated N169.52 billion while Mining Cadastre Office, MCO, and Mining Inspectorate Department generated N4.3 billion and N3.62 billion respectively.
The report showed that from 2007 to 2021, government revenue from the sector amounted to N814.59 billion.
The sector recorded 85 percent increase in mining licences to 2,045 in 2021 from 1,482 in 2020. Also, total export from the sector in 2021 was 143,000 tons valued at $101 million with China accounting for 95 percent and 88 percent of the export volume and value.
The report also stated that the mining sector contribution to the Gross Domestic Product, GDP, was 0.63 percent or N1.10 trillion. In terms of contribution to government revenue, the report disclosed the solid minerals sector contributed just 2.62 percent of the government’s N6.63 trillion total revenue.
On production, the solid minerals report disclosed 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 were 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.
The NEITI report revealed that Ogun State recorded the highest production in 2021, with a total of 17.5 million tons followed by Kogi State with 16.3 million tons and Edo State with 8 million tons. The least production volume was recorded in Borno State with 25,500 tons.
Speaking at the event, the Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji pointed out that the audit “report shows courageous findings and recommendations expected to shape future policy decisions, yield the desired impact by blocking leakages and growing government revenues if effectively implemented”.
Dr. Orji said amongst other things, the report found that only 39 out of 121 companies made the mandatory social payments as contained in the Community Development Agreement, CDA, signed with their host communities while 10 companies made only non-mandatory social payments/expenditures.
“This reveals poor compliance to the social benefit to host communities’ requirements of the Mining Act 2007 and NMMR 2011 as embedded in the CDAs”, he added.
He urged the National Assembly to debate the report and hold entities responsible for failing in the sector to account.
On his part, the Secretary to the Government of the Federation, Senator George Akuma who unveiled the report, said the Federal Government was satisfied with the performance of NEITI over the years.
Represented by the Permanent Secretary, General Services, Office of the SGF, Dr. Maurice Umeri, Akume said “President Bola Ahmed Tinubu’s Administration is fully committed to the fight against corruption in the extractive industry in particular and in the other sectors of the economy. As an administration, we are convinced that the revival of our economy and the 8-point agenda that we recently unfolded cannot yield the desired result if we do not support and strengthen anti-corruption and reform-oriented agencies like NEITI”.
In his goodwill message, the Speaker of the House Representatives, Rt. Hon. Tajudeen Abbas assured the NEITI and other stakeholders that NEITI’s audit reports when received would be debated at plenary at the House of Representatives.
Abbas who was represented by the Hon. Awaji Inombeth Abiante, Chairman House Committee on Urban Development and Regional Planning, said: “The 10th House of Representatives will do everything within its powers to equip NEITI with stronger statutory powers, through legislative amendments on the NEITI Act geared towards enabling NEITI carry out its task of ensuring transparency and accountability in the extractive industry.
“The House of Representatives will also play its part in ensuring the implementation of NEITI’s Report, in line with the relevant provisions of NEITI Act. The House will ensure that the Report is laid on the floor of the House and debated extensively to ensure the implementation of the recommendations made therein. Working together, we will ensure the realization of the government’s desire for diversification of the economy for the attainment of alternative source(s) of revenue and clean energy, that will bring about the realization of the 8 trillion-dollar revenue for Nigeria in the next eight years
