Solid minerals earnings in Africa's largest economy hit N814bn in 15 years, but falls short of its full potential.

The report revealed that the industry made a significant contribution of N818.04 billion over a span of 15 years (2007-2021), with the earnings in 2021 marking the highest in this period.

The N193.59 billion earned in 2021, was an increase of ₦60.32 billion or 51.89 percent growth, when compared to the 2020 revenue flows of ₦116.82 billion.

However, the report highlighted that the amount generated from the solid minerals sector was notably low when compared to the sector’s economic potential. It emphasized that out of the N6.62 trillion total government revenue in 2021, the solid minerals sector only contributed a mere 2.6%.

In 2021, a total of 76.28 million tons of solid minerals were either utilized or sold, resulting in royalty payments amounting to N3.57 billion. The minerals that recorded the highest production volumes during the year included Granite, Limestone, Laterite, Clay, and Sand.

Dangote Plc led the production charts for the year, contributing a total of 28.8 million tons. Bua and Lafarge followed closely with production figures of 8.4 million tons and 4.3 million tons, respectively, while Zeberced accounted for 3.3 million tons.

The NEITI report also pointed out that Ogun State recorded the highest production in the year under review, with a total of 17.5 million tons followed by Kogi State with 16.3 million tons and Edo with 8 million tons. The least production volume was recorded in Borno State with 25,500 tons.

Regarding exports, the report disclosed that the total minerals exported in 2021 amounted to 142.54 million tons, boasting a Free on Board (FOB) value of $101.29 million. This figure reflected a substantial 138.57% surge compared to the $42.46 million reported in the 2020 report.

However, the solid minerals sector’s contribution to the overall export value in 2021 stood at a modest 0.24%. Notably, The First Patriot Nigeria Limited, located in Ebonyi state, held the lion’s share, accounting for 44.26% of the total export value.

China emerged as the primary destination for Nigeria’s mineral exports, accounting for a substantial 97 percent of the export volume and 88 percent of the export value. Other countries that received Nigeria’s minerals included Malaysia, Korea, Thailand, and the UAE, in descending order of significance.

Employment statistics from the sector revealed that in 2021, the sector provided employment to a total of 25,618 individuals, including 596 expatriates and 25,022 Nigerians. When considering gender distribution, 92 percent of these jobs were held by men, while women accounted for 8 percent of the sector’s employment.

On Emerging Issues, the report recommended that the federal government should collaborate with relevant stakeholders to ensure that the Energy Transition Plan (ETP) is consciously implemented with the Energy Transition Minerals such as Cobalt, Lithium, Nickel, Copper, Graphite and Titanium to increase revenue to government coffers and create employment opportunities for the teeming youths.

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