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Nigeria earned N416.32bn from solid minerals in 12 yrs – NEITI

Nigeria earned N416.32bn from solid minerals in 12 yrs – NEITI

The solid minerals sector has contributed N416.32 billion to the Nigeria’s federation revenue in 12 years, the Nigeria Extractive Industries Transparency Initiative (NEITI) has reported. NEITI stated that over half of this figure or N279.0 billion was earned between 2015 and 2018, according to NEITI.
According to the agency’s spokesperson, Dr. Orji Ogbonnaya Orji, this showed that there had been “a remarkable increase in revenues accruing to the federation account from the solid minerals sector over the years.” The audit report reconciled companies’ payments and government’s receipts from the sector in 2018 as well as tracked production volumes and trends of revenues from the sector to the federation account from 2007 to 2018.
The report stated the solid minerals sector contributed N69.47bn to federation revenue in 2018 alone, the highest so far since NEITI commenced reconciliation of payments in the sector.
The figure shows an increase of N16.71bn, representing 31.67% over the 2017 revenue of N52.76bn. The earnings (N69.47bn) also accounted for 16.69% of the total revenues (N416.3bn) that accrued to the sector from 2007 to 2018.
A breakdown of the receipts showed that taxes to the Federal Inland Revenue Service (FIRS) accounted for N65.69bn (94.56% of the total) while fees and royalties paid to the Mines Inspectorate Department (MID) and Mining Cadastre Office (MCO) accounted for N2.21bn (3.18%) and N1.57bn (2.26%) respectively. According to the NEITI report, “Nigeria has published eight cycles of solid minerals audit reports since it signed up to the EITI. The sector has contributed N416.32billion in revenues to the federation in 12 years. Over half of this figure or (N279.0bn) was earned between 2015 and 2018”. The just published report further highlighted that the sector had, over the years, also witnessed fluctuations in revenue earnings. For instance, in 2015, N64.46bn accrued to the federation, while in 2016, the earnings dipped to N43.22bn. It will be recalled that 2016 was also the year that the Nigerian economy slid into recession. NEITI also disclosed that the main sources of revenue flow from solid minerals remained the various categories of taxes, royalty, permits, annual services and sub-national payments. The report also stated that sub-national payments and other taxes accounted for “₦1.54bn representing about 2.23% of total government revenue from the sector”.

Source:- https://www.dailytrust.com.ng/nigeria-earned-n416-32bn-from-solid-minerals-in-12-yrs-neiti.html