City Crime
Nigeria Makes Only N496bn From Solid Mineral In 13 Years
Nigeria realised a meagre N496billion from solid minerals in 13 years despite the country’s huge deposits, the Nigeria Extractive Industries Transparency Initiative (NEITI) has said in its latest audit report.
The amount is what accrued to the federation as revenue between 2007 when NEITI commenced reconciliation of payments in the solid minerals sector and 2019.
Nigeria is blessed with huge deposits of solid minerals, amongst them gold, tantalite, barite, limestone, bitumen, kaolin, and topaz.
With the volume of the deposits, experts say the solid mineral sector, if well harnessed, can generate more revenue for the country and compete with the economy’s mainstay, oil and gas.
Oil and gas generated N13.9trillion ($34billion) in 2019 alone.
Wrong policies and legal encumbrances have hindered the sector from unlocking its full potentials.
The sector has also been beset by illegal and corrupt activities, with operators often failing to remit revenues to the government, mining illegally, evading tax and smuggling mined products out of the country.
The NEITI report said the sector generated just N79.96billion in 2019, and contributed 0.26 per cent to gross domestic product that year.
Of the amount generated, states shared N5.1billion, higher than N2.1billion shared in 2018.
The report said N1.16billion was distributed to solid minerals producing states as 13per cent derivation.
“Nigeria’s GDP in 2019 was ?144.210trillion with contributions from the solid minerals sector totalling ?368.99billion, representing 0.26 per cent of the total amount,” the report said.
“This shows a steady growth in the sector’s contribution to the economy in the past five years, from a contribution of 0.12 percent in 2015 to 0.26 percent in 2019.”
The report said of 702 companies that paid royalties to the government in 2019, only 74 companies paid ?3million and above.
“These 74 companies accounted for 87.63 percent of total royalties of N2.50billion paid in 2019, with the top 5 companies (Dangote Cement PLC; Lafarge PLC; Dangote Industries; Julius Berger; and Reynolds Construction) paying more than 50 percent of total royalties,” the report stated.
It also disclosed that a total of 1,296 mineral permits were issued by the Mining Cadastre Office (MCO) in 2019.
The breakdown showed that Small Scale Mining Leases were the highest with 602 permits granted.
This was followed by 501 and 169 for Exploration Licenses and Quarry Leases, respectively, while the least figure of 24 was recorded for Mining Leases.
The 2019 audit report revealed that the total volume of minerals produced was 59.82 metric tonnes.
On exports, the report said the solid minerals sector accounted for N124.23billion of the total government exports of N24.275trillion for 2019, representing just 0.51 per cent of total export for the year.
To address the issue of non-payments of taxes and multiple tax identification numbers (TIN), the NEITI report recommended that the Federal Inland Revenue Service (FIRS) should carry out comprehensive tax audits to recover all unpaid taxes by companies and also work in collaboration with the Ministry of Mines and Steel Development (MMSD) to reconcile the multiple tax identification numbers by some companies.
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Renaissance Energy Pledges Stronger Partnership With RIVCHPP
The company’s General Manager, Health, Dr. Akinwumi Fajola, said the proposed partnership would involve the constitution of a joint team comprising representatives of Renaissance and RIVCHPP to deliberate on and develop modalities for deeper collaboration.
Fajola, who spoke during the visit, said the engagement would help strengthen the agency’s operations and advance the attainment of Universal Health Coverage in Rivers State.
He noted that the seeming bottlenecks often associated with government agencies had made some organisations and individuals sceptical about engaging with them.
According to him, the leadership style of the RIVCHPP Executive Secretary had demonstrated positive changes capable of attracting public and private-sector partners.
He stated that Renaissance Energy Limited would further strengthen its engagement with RIVCHPP, particularly in promoting health insurance within its operational areas.
Earlier, Agala described RIVCHPP as a legacy project of the State Governor, Siminalayi Fubara, established to ensure that Rivers residents have access to quality and affordable healthcare in line with the administration’s #Health4AllRivers vision.
She said since the agency became operational in January 2024, it had sustained awareness campaigns across the formal and informal sectors, resulting in steady growth in enrolment.
Agala disclosed that RIVCHPP had enrolled more than 160,000 residents across the state’s 23 Local Government Areas, giving them access to healthcare services.
She also said although Rivers was among the last states in the country to operationalise a health insurance agency, it had risen to 13th position in Universal Health Coverage and was recognised as the most improved state at the Federal Ministry of Health’s 2025 joint annual review meeting.
The Executive Secretary said the agency was implementing comprehensive healthcare plans covering all population groups, including vulnerable residents, to protect households from health poverty and catastrophic health expenditure.
She commended Renaissance Energy Limited for promoting health insurance in its operational areas and congratulated Fajola on his recent promotion.
The visit featured the exchange of promotional materials and souvenirs between the two organisations.
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