The Nigeria Extractive Industries Transparency Initiative (NEITI) in its latest report released in Abuja revealed that activities in mineral production in 2017 were dominated by Dangote Cement.
According to the report, Dangote Cement was responsible for about 46 per cent of the total mineral production that year.
The company reported total revenue of ₦901.2 billion during the end of the financial year December 31, 2018, as against the ₦805.5 billion achieved in 2017.
The NEITI report also listed the other big players in the sector to include Lafarge Cement Plc., CGC Nigeria Limited, and Julius Berger Plc.
“The four companies produced over 27 million tons of minerals, representing 77.31% of the total minerals production quantity and over 60% of the production value”, the report said.
Despite the increase in revenue and production, the report disclosed that the sector did not make changes in terms of employment. The sector contributed about 0.3 percent to the total employment in the country, this is the same as the number recorded in 2016.
Contribution to Exports
The report also revealed that the sector exported about 16.34million metric tons of minerals valued at $29.90million in 2017.
“Nigeria’s total export was about ₦13.60trillion with solid minerals contributing N77.23billion or 0.57 per cent of total export in 2017”.
The trend analysis showed that in 2015, solid minerals export was N1.94 billion.
The sector contribution to the overall export saw a significant leap of N11.16 billion in 2016 and an equally impressive figure of N77.23 billion in 2017.
This is an indication that the solid minerals sector is steadily contributing to the federation’s export earnings but requires greater government attention, the report noted.
“The major destination of Nigeria’s export during the year under review is China. The country accounted for 68 per cent of the total export value during the year” it said.
Other destinations are Malaysia, Vietnam, and India.
The report however observed that export data received from the Nigerian Customs Service (NCS) include minerals that were not captured in the production data provided by the MID as well as inconsistency in the FOB value of minerals.
The report also contains comprehensive information and data on how many licenses were issued as well as gross revenues that accrued to the federation account from both oil and non-oil sources for the year 2017.
It confirmed that while Nigeria’s gross revenues stood at ₦7.35 trillion, revenues specifically from the solid minerals sector represented only about 0.05%.
The report explained that the absence of an industry-specific fiscal regime made it difficult to tie revenue flows from the solid minerals industry to the federation account.
It said the development equally affected efforts at quantifying the contribution of the solid minerals sector to Nigeria’s GDP, which presently stands at the current basic price of ₦113.72 trillion.
The report, however, highlighted that the sector’s contribution to GDP was an abysmal 0.11percent, which showed a decline of 0.01 per cent and 0.02 per cent from the data of 0.12 per cent in 2015, and 0.13 per cent in 2016.
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Publish date : 2019-10-28 12:56:40