By Juliet Ukanwosu
The Nigeria Extractive Industries Transparency Initiative (NEITI) recently released the 2021 solid minerals industries audit report.
Extractive360 analyzes the Report, and present the key highlights in this article
- The 2021 report is the 12th cycle of solid minerals industries report by NEITI
- From a total of 1,214 extractive companies operating in the sector, 914 companies made royalty payment out of which 121 met the materiality threshold of N3 million and were responsible for 92% total royalty payment for the year
- 59 billion was the total revenue generated by the sector in the year under review
- The 2021 revenue increased by N60.32 billion or 51.89% when compared to the 2020 total generated revenue of N116.82 billion
- Total financial flows to the Federation Account from the total generated revenue in 2021 was N177.44 billion
- Of the total generated revenue, the FIRS generated a total of N169.52 billion, Mining Cadastre Office N4.3 billion, Mining Inspectorate Department N3.62 billion
- In the year under review, total outstanding flows to government is N1.06 billion. This is due to the failure of some of the companies to pay their annual service fees for the respective mineral titles.
- The sector has contributed N818.04billion ($3.2billion) to Federal Government’s receipts between 2007 and 2021
- There was an increase of 85% in number of artisanal minerals operator’s license from 1,273 in 2020 to 2,336 across the country in 2021. However, there was no commensurate data in production, royalty payments, exports, etc. to support this increase in operators.
- The report identified Energy Transition Minerals or the future minerals as Cobalt, Lithium, Nickel, Copper, Graphite and Titanium. In the year under review, Nigeria issued 20 exploration licenses for Lithium while 30 exploration licenses were issued for Copper.
- 107 Beneficial Ownership (BO) information were obtained out of 121 companies covered in the audit
- Of the 121 companies covered in the audit, 67 CDAs were obtained and documented
- Only 39 out of 121 companies made the mandatory social payments as contained in the CDA signed with their host communities, revealing poor compliance to the social benefit to host communities’ requirements of the NMMA 2007 and NMMR 2011 as embedded in the CDA’s.
- Total minerals production in 2021 was76.27 tons with total royalty payments of N3.5billion.
- In the year under review, Granite, Limestone, Laterite, Clay and Sand were the minerals with largest production volume
- Ogun, Kogi and Edo States recorded the highest mineral production in the year under review, with a total of 17.5million tons, 16.3 million tons and 8 million tons respectively. The least production volume was recorded in Borno State with 25,000 tons
- Total minerals exported in the year was 143,000 tons. First Patriots contributed the highest value of $44.83 million. China, Malaysia, Korea, Thailand, and UAE were the top export destinations accounting for 87.89%, 4.64%, 1.41%, 1.17% and 1.11% tons, respectively.
- The sector contributed 0.63% to GDP, (Nigeria’s GDP was N173.53 trillion in 2021. Solid minerals sector contributed N1.10 trillion) 0.24% to export and 2.62% to government revenue (total government revenue was N6.63 trillion. Solid minerals sector contributed N173.98 billion) in the year under revenue
- There were 25,022 local employments in the sector in 2021, out of which women occupied 1,932 (8%) while men accounted for 23,090 (92%). There was a total of 596 expatriate’s employments made up of 441 males and 155 females.
- There is no State participation in Nigeria’s solid minerals sector