BusinessFeatured

238 Mining Companies Owe FG N1.06 Billion in Annual Service Fees, Reports NEITI

The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that approximately 238 mining companies owe the Federal Government a total of N1.06 billion in annual service fees, as outlined in its Industry report for the Solid Minerals Industry in 2021.

According to the report, “From the Internal Audit (IA) review of Mining Cadastre Office’s (MCO) records of mineral title holders, it was observed that 238 companies holding 289 valid licenses had outstanding payments of N1.06 billion for annual service fees.” This amount represents an increase from N654.28 million in 2020.

The report further stated, “As of December 31, 2020, records from MCO indicated that 233 companies holding 284 licenses still had outstanding annual service fees of N654.28 million. By December 31, 2022, the outstanding liabilities of these companies had increased to N1.06 billion.”

Out of a total of 1,214 companies operating in the sector, 914 made royalty payments. Of these, 121 companies met the set materiality threshold and were responsible for 92 percent of the total royalty payments.

The total revenue received by federal, state, and local government agencies from the mining sector in 2021 was N193.59 billion.

During the year under review, a total of 2,045 licenses were issued, and the total mineral production reached 76,277,187 tons.

The report highlighted that the minerals with the largest production volume in the same period were granite, limestone, laterite, clay, and sand.

It emphasized, “Analysis by company shows that the major contributors to production are Dangote, BUA, and Lafarge, with a combined production quantity and royalty payment of 41,438,553 tons and N1.37 billion, respectively. Dangote accounted for a significant share of total production (37.72 percent) and royalty (25.55 percent).

These figures underscore the significant role played by these major companies in the mining sector.”

Regarding production by state, Ogun recorded the highest output in the year under review, with a total of 17.5 million tons, followed by Kogi with 16.3 million tons, and Edo with 8 million tons.

Dr. Ogbonnaya Orji, the Executive Secretary of NEITI, pointed out that the 2021 figures represented a 51.89 percent increase of N60.32 billion compared to the 2020 revenue flows of N116.82 billion. He acknowledged the sector’s potential for the Nigerian economy but highlighted the need for improvement.

The Speaker of the House of Representatives, Tajudeen Abass, represented by Chairman House Committee on Urban Development, Awaji-inombek Abiante, described the report as crucial for sanitizing the extractive sector to boost job creation and revenue generation

 

Do you want to share a story with us? Do you want to advertise with us? Do you need publicity for a product, service, or event? Contact us on WhatsApp +2348183319097 Email: platformtimes@gmail.com

Related Articles

Back to top button