Dangote wins Solid Mineral Industry Royalty payment with N635.52 Million in 2019, the Nigeria Extractive Industries Transparency Initiative (NEITI) revealed

By Abdul Rahman Bangura–

Photo Credit: iStock

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- The (NEITI), on July 13th, 2021 in Lagos divulged that, Dangote Cement Plc donated 25.40% of the Royalties obtained from Nigeria’s solid mineral sector with a payment of N635.52 million, in the year 2019.

NEITI, said overall, Nigeria earned a total of N79.9 billion from the solid minerals its latest audit report indicated. The announcement was related to the Media and Civil Society Organizations by Dr. Dieter Bassi, Director – Technical, NEITI on Tuesday July 13th, 2021in Lagos.

The news proved that, the dividend was 13.02% higher than the N69.5 billion acknowledged in 2018 and that the royalties obtained improved from N1.96 billion in 2018 to N2.50 billion in 2019.

According to NEITI, the 2019 report encompassed 74 entities, an improvement from the 69 caught in 2018, while production volume rose to 59.83 million tons in 2019 correlated to the 40.7 million tons taped in 2018. Research incorporated in the statement, revealed that Export Volume production in 2019 was 7.09 million tons, a decline of 124.75 million tons from the 2018 figure.

Limestone, Granite and Laterite were the most produced minerals in 2019 reckoning for 55.03 million tons, with three states, Ogun, Kogi and Cross River computation for 37.92 million tons with Ogun recording 18.65 million tons; Kogi, 12.77 million tons; and Cross River, 6.50 million tons, respectively.

Moreover, the report exhibited that 61 corporations sent abroad solid minerals in 2019 with China being the principal destination and accounting for 95% of the solid minerals exported. It said the Solid Minerals Sector subscribed a total of N368.99 billion, exemplifying 0.26% to Nigeria’s Gross Domestic Product (GDP), which was N144.210 trillion in 2019. It further expanded that, the sector had provided N917.02 billion to the economy in the last five years.

It, however, observed some challenges in the sector in the period under review such as under payment of royalties and non-payment of taxes by some companies. The report also identified lack of productive monitoring and supervision and restrict momentum in growth of metallic minerals as effecting potential penalties in dividend to the
administration.

Dr. Ogbonnaya Orji – Executive Secretary, NEITI, explained the statute of NEITI was to enhance transparency and accountability in the Extractive Industry for the advantage of Nigerians. He remarked that, though the NEITI Act of 2007 was concentrated on the Oil and Gas Industry, the agency was now striding toward solid minerals which were
sufficient in the nation.

And asserted that, the 2020 report of the Solid Minerals Sector would be published in September, 2021adding that NEITI was being moved for efficiency to have its desired consequence in the country.

For New Africa Business News (NABN) Abdul Rahman Bangura Reports,  Africa Correspondent