Nigeria earns N624bn from mining in 13 years

Nigeria has earned about N624bn from the mining sector within 13 years up to 2020, says the latest Independent Solid Minerals Industry Report published by the Nigeria Extractive Industries Transparency Initiative (NEITI).

In a statement containing highlights of the 2020 report on Sunday, NEITI said, “The reports revealed that the sector has contributed a total of N651.55bn to the government’s coffers within the 13 years.”

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The agency also said the solid minerals sector contributed N128.2bn to the economy in 2020 rising from the N74.8bn recorded in 2019; the federal government, states and local governments also shared N8.89bn solid minerals revenue in the year.

The report further stated that over 2,119 mining companies are owing the federation over N2.76bn as of 2020 meant for statutory annual service fees for respective mineral titles.

While 6,010 existing solid mineral titles were valid as of 31st December 2020, 7,605 mining titles were issued in the past five years. 

Commenting, the Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, said: “It is of interest to NEITI that every kobo counts to reduce government’s financial burden, and our reports will continue to provide useful information and data on who owes what in the oil, gas and mining sector.”

Nigeria produced 71.1 million metric tons (MT) of minerals during the year including granite, limestone, sand and laterite with five states leading by 66%; they are Ogun, Kogi, Cross River, Edo and Bayelsa. 

The top mining firms were Dangote Cement, Lafarge Plc, BUA International and Dantata and Sawoe producing about 64% of the volume.

The country also exported 32.99 million tons valued at $42.46m with China being the largest (80%) destination.

From the N152.32 trillion Gross Domestic Product (GDP) in 2020, the solid minerals sector contributed N686.64bn. NEITI recommended that the government create a public-private- state-owned enterprise (SOE) similar to NNPC Ltd to lead and drive investments in the sector.