AUDIT report released by the
Nigerian Nigeria Extractive Industries
Transparency Initiative NEITI has
shown that revenue generated by
the federal government in the solid
minerals sector in 2015 amounted
to N69.200 billion. This was part of
the extract from report posted this
week. According to NEITI, these
include the reconciled revenue
amounting toN63.831 billion and
unilateral disclosure by Government
amountingtoN632.449Million.
The value of exports of solid minerals
in 2015 was $9.733 Million out of which
Lead/Zinc accounted for about 79.62%
with FOB value of $7.749 Million. The
year recorded an export of 175 Ounces
of Gold concentrate at the value
$122,500
There was an increase in government
revenues from the Solid Minerals
Sector fromN55.814billion in 2014
toN69.200 billion. This represents a
23.98% increase and is due mainly to
the growth in the amount of taxes paid
to FIRS and increase in royalty rates
effective from the middle of the year.
The scope covers reconciliation of
actual payments by major companies
and receipts by government agencies
in the Solid Minerals sector in 2015. He
said that Ccompanies operating under
a mining or quarrying license which
made royalty payments of N3 million
and above were considered for the
reconciliation. This set of companies
that met the N3m materiality threshold
represented 86.99% of total royalty
payments for the year under review.
While those that made royalty
payments below the threshold are
included through unilateral disclosure
by government entities. Based on the
submission of Mines Inspectorate
Department (MID), a total of 481
companies made royalty payments
in 2015. Out of the 481 companies,42
accounted for 87 % of the Royalty
payment and are the ones that met
the materiality threshold. Analysis of
the Solid Minerals Sector in Nigeria
shows that for most of the companies
selected, their main activities are in
manufacturing (cement production,
e.g. Dangote, WAPCO) or construction
(such as Julius Berger, Dantata &Sawoe,
CCECC, and Triacta).
There were a total of4305 valid
mineral titles in 2015 which comprised
of: 204 MLs, 657 SSMLs, 1865
QLs and 1579 ELs. Seven transfers of
tittle were approved during the period
under review;all the transfers were
on ELs except one SSML. Meanwhile,
1230newtitles were issued in 2015;
these comprised of: 455 ELs, 262 QLs,
193 SSMLs, 11 MLs and 309 RP. Out of
the 11 MLs issued in the year three each
were for the mining of Coal, Limestone
and Iron while the other 2 were for
Gold and related minerals mining.
Though there are valid licences
on minerals such as Gold, Copper,
Iron, Gemstones etc, but the revenue
contributions from such remain
insignificant.
According to the data provided by
the Mines Inspectorate Department
(MID) total production across the
whole solid minerals sector in 2015
was 39.27Million tons lower than 47.1
Million tons producedthe previous
year or a 19.9%decrease. There was a
general decrease in production for all
minerals except shale which conversely
increased by 32%, to 1.076 Million tons
in 2015.
Sectorial analysis of SM contribution
shows that Contribution to Gross
Domestic Product The Solid Minerals
sector contributed0.12% of the national
GDP in 2015
Also Contribution to Export indicates
that total non-oil exports value FOB in
2015 was USD$672,523,202.12 and the
Solid Minerals accounted for 1.45%
Lastly Contribution within the
sector disclosed that the cement
manufacturing companies are the
major revenue contributors to the
sector. The table below indicates
sectorial contributions.

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