Nigeria Earned N69.2bn from Solid Minerals Sector in 2015, Says NEITI

Nigeria earned N69.2 billion from the solid minerals sector in 2015, an increase of 24% on the N55.8 billion earned from the sector in 2014.

This information is contained in the latest independent audit report of the Nigeria Extractive Industries Transparency Initiative (NEITI) released yesterday, following the approval of the report by the National Stakeholders Working Group, which is the board of NEITI, according to a statement by Director, Communications and Advocacy, Mr. Orji Ogbonnaya Orji.

The audit report disclosed that the total production of solid minerals in the country stood at 39.27 million tonnes. This represents a reduction of 17% from the 47.1 million tonnes produced in 2014. The drop in 2015’s production was attributed to insecurity in parts of the country and more stringent approval process for explosives used in mining.

However, while mineral production reduced, government revenues went up in the same year. “This increase in revenue was due to the growth in taxes collected from the sector and review of royalty rates paid by companies which came into effect within the year under review,” the report stated.

NEITI’s previous solid minerals audit reports had recommended upward review of Nigeria’s royalty rates to align with prevailing industry and present day realities, the statement said.

The report also disclosed that the value of solid minerals exports in 2015 stood at $9.733 million, which was 1.45% of non-oil exports for the year. Lead and zinc topped the chart with 79% valued at $7.7 million, while 175 ounces of gold valued at only $122,000 were exported during the period.

The report showed that the solid minerals sector contributed 0.12% to Nigeria’s Gross Domestic Product (GDP) in 2015, a marginal increase of 0.01% on the 0.11% contribution of the sector to GDP in 2014.