Nigeria Loses $9b To Solid Minerals Leakages Annually – NEITI

BY RUTH TENE, ABUJA – The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that Nigeria loses nine billion dollars ($9) to the leaks in solid mineral mining annually.

Global Rights Country Director, Ms Abiodun Baiyewu quoted the figures in her welcome remarks at a Two Day Stakeholders’ Workshop on Improving Fiscal Transparency in Nigeria’s Mining, Organised by Global Rights in collaboration with NEITI which began in Abuja on Tuesday.

Baiyewu while quoting some basic facts as presented by NEITI, said that Nigeria loses at least $9b to leaks in solid mineral mining annually.

Recalling that Nigeria generated ‘N2.5billion in royalties in 2018, of this sum, the seven strategic minerals mined contributed N1 07 billion representing 49.7 person of the total royalty.

She further said that ‘Nigeria produces about 9,000 tons of gold annually saying that of this sum, gold accounted for just N7.36million while as at 2019, 44% of valid mineral titles for the seven strategic minerals were 141 licenses’

She further said that only 43 mineral buying centers had 325 valid licences with an official gold output quantity of 1,212.77 ounces estimated at N11.69 billion with a gross royalty payment of N6.46 million by 31 companies (Sokoto and Niger States) contributing 70.36 per cent of the total production according to the agency.

Baiyewu further said; “the meeting was aimed at strengthening and increasing engagements between civil society actors and the government, on ensuring fiscal justice in Nigeria’s solid minerals governance and has as one of its hallmark features engagement with oversight institutions tasked with fostering transparency and fiscal justice in Nigeria Extractive industry.”

Also speaking, the Executive Director/Chief Executive Officer of NEITI, Dr Orji Ogbonnaya Orji said the event which was a collaboration between his Agency and Global Rights was to build the capacity of key stakeholders that include government, mining host communities, civil society organisation and the Nigerian Media.

Orji said that often times, public discourse on resource extraction and governance tends to concentrate more on profits to companies and government revenue receipts to the detriment of its negative impacts.

He said that the agency’s latest audit of the solid minerals revealed that N8.89billion minerals revenue was distributed to the three tier of government in line with the revenue sharing formula in 2020.

He said; “to ensure fiscal justice and accountability in the application of such revenue, NEITI believes active citizens participation and oversight is critical”.

NEITI reports, Dr Orji added, had shown a steady increase in revenues from the solid minerals sector to the federation account, adding that when NEITI conducted the first audit of the sector in 2007, the revenue flow to the federation was a paltry N8.9b compared to 2019 which recorded about N79.97billion.

He said that to realise the potentials in the sector, there was need for both increasing expansion of both state and non-state actors just as he called on the media and civil societies to use information and data contained in the EITI/NEITI reports to galvanise and mobilise citizens to actively participates in the governance of natural resources through public enlightenment.

He also urged the government to pay closer attention to the sector, inject more funds and eliminate all possible cases of multiple taxations in the sector

In his Keynote address, the Minister of Mines and Steel Development, Mr Olamilekan Adegbite lamented the huge leakage caused by the high activities of illegal miners.

Adegbite said that one of the key priorities of the Nigerian government is to enhance the diversification of the economy to a broader range of productive sectors, noting that in this context, agriculture and the mining sector have been identified by the current government of President Muhammadu Buhari as potential sources of growth for the future.

He said; “Unfortunately in Nigeria, despite the country’s resource potential and its past experience as a significant mineral producer of tin, columbite and coal, the sector today has one of the lowest outputs in the Nigerian economy”.

The minister said the country continues to struggle to become a significant player in most of the core global mining commodities.

As parts of efforts to address some of the challenges in the sector, Adegbite said that the Ministry was currently undertaking intervention projects across the geopolitical Zones to boost the sector.

The interventions, he said include, the Gold School in Kano aimed at stopping gold smuggling which is said to be losing N9b annually, teaching jewelry making to 45 people in the FCT to become trainers across the states and also building a processing plant in Bauchi for Kaolin.

Other activities, he said include the Cross River Barite processing plant as well as the Lead Processing Plant in Ebonyi State.