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NEITI: Solid minerals contributed N69bn to FG’s revenue in 2018 — highest in 12 years

NEITI: Solid minerals contributed N69bn to FG’s revenue in 2018 — highest in 12 years
March 16
16:01 2020

A new report released by the Nigeria Extractive Industry Transparency Initiative (NEITI) has shown that the solid minerals sector contributed N69.47 billion to the federation revenue in 2018.

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According to the report which was released on Monday, this is the highest contribution in 12 years.

The figure is an increase of N16.71 billion from N52.76 billion recorded in 2017.

A breakdown of the revenue flows showed that taxes, royalties and permits were the main sources of revenue to the government.

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“Receipts showed that taxes to the Federal Inland Revenue Service (FIRS) accounted for N65.69 billion (94.56% of the total) while fees and royalties paid to the Mines Inspectorate Department (MID) and Mining Cadastre Office (MCO) accounted for N2.21 billion (3.18%) and N1.57 billion (2.26%) respectively,” a statement by Orji Ogbonnaya Orji, NEITI’s director of communications and advocacy, read.

The report also stated that sub-national payments and other taxes accounted for “₦1.54billion representing about 2.23% of total government revenue from the sector”.

According to the report, 46.68 million metric tons of minerals valued at N47.87 billion were used and sold in Nigeria in 2018.

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“A breakdown of the production volumes showed that limestone and granite accounted for about 80% of the total minerals produced. Limestone alone contributed 54.85% while granite accounted for 23.88% of minerals mined,” the report read.

“On state-by-state production, the report disclosed that in 2018, most of the mining activities in the country took place in Ogun state. The state accounted for 12.66 million metric tons (27.13%) of the total volume produced during the period under review.

“Ogun state was followed by Kogi and Benue states, each accounting for 22.88% and 10.10% respectively.”

Dangote Cement Plc and Lafarge Africa Plc were reported as the biggest players in the sector; contributing 57.22% of the total minerals produced in 2018.

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Dangote Cement accounted for 46.38% and Lafarge Africa, 10.84%.

In terms of contribution to employment, the sector was reported to have employed 9,873 people who were mostly Nigerians.

Of this figure, 96.53% of the jobs were reported to have been occupied by men while women held the remaining 3.47%.

Six physically challenged persons were recorded as being employed in the sector in 2018.

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