Economy
2,000 Companies in Solid Minerals Sector Owe N2.76bn—NEITI
By Adedapo Adesanya
More than 2,000 companies in the solid minerals sector owe the Nigerian government about N2.76 billion, the Nigeria Extractive Industries Transparency Initiative (NEITI) has alleged.
The agency disclosed this in a statement issued by its Deputy Director/Head of Communications and Advocacy, Mrs Obiageli Onuorah.
The NEITI Independent Solid Minerals Industry Report tracked and reconciled financial flows in the sector, checked quantities of minerals produced, utilised and exported in 2020.
Presenting the report before its multi-stakeholders, Mr Orji Ogbonnaya Orji, Executive Secretary, NEITI, said the companies’ liabilities resulted from failure on the part of 2,119 companies to pay statutory annual service fees for respective mineral titles.
Mr Orji said that 6,010 existing solid mineral titles were valid as of December 31, 2020, while 7,605 mining titles were issued in the industry in the past five years.
“At this time that government is desperate for revenues to finance the widening budget deficits, NEITI is determined to use its reports to disclose potential revenue recoveries, awaiting immediate action by relevant government agencies.
“It is of interest to NEITI that every kobo counts to reduce government financial burden, and our reports will continue to provide useful information and data on who owes what in the oil, gas and mining sector,” Mr Orji declared.
He announced that the total revenue contributions from the sector in 2020 rose to N128.27 billion, an increase of over 54 per cent from the N74.85 billion recorded in 2019 in spite of the COVID-9 pandemic.
Mr Orji said the report also revealed that N8.89 billion was shared to the federating units as solid minerals revenue in 2020.
“Breakdown of the figure shows that federal government received N4.07 billion (45.83 per cent), states and local government areas received N2.07 billion and N1.59 billion (23.25 per cent; 17.92 per cent) respectively while N1.16 billion (13 per cent) was recorded as derivation share.
The executive secretary disclosed that 71.1 million metric tons of minerals were produced in 2020.
According to him, a breakdown of the total production showed that granite, limestone, sand and laterite were the highest contributors to minerals royalty payments recorded within the period.
He further disclosed that five states of the federation: Ogun, Kogi, Cross River, Edo and Bayelsa topped the table, contributing 66 per cent of solid minerals produced in the country that year.
On companies’ activities that shaped business investments in the solid minerals sector, he identified Dangote Cement Plc as the first, followed by Lafarge Plc, BUA International and Dantata and Sawoe with the highest production.
This, he said, accounted for about 64 per cent of the total mineral production volume in 2020.
He further disclosed that total minerals export in 2020 was 32.99 million tons valued at 42.46 million dollars while China with 80 per cent of the total export remained the major destination for Nigeria’s solid minerals exports.
“From the report, a total of N3.87 billion was recorded in 2020 as social expenditure, representing an increase of 49 per cent over the amount expended for the same purpose in 2019.
“Besides, N5.8 million was documented as environmental expenditure by three companies in the year, while information on Community Development Agreements was not disclosed,” he noted.
Mr Orji said the report revealed that out of Nigeria’s total Gross Domestic Product (GDP) of N152.32 trillion in 2020, the solid minerals sector contributed N686.64 billion representing only 0.45 per cent.
By Adedapo Adesanya
The first trading day of the week in the currency market was bearish for the Naira in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, April 27.
Yesterday, it lost N5.80 or 0.43 per cent against the United States Dollar to trade at N1,364.24/$1, in contrast to the N1,358.44/$1 it was traded last Friday.
In the same vein, the Nigerian currency depreciated against the Pound Sterling in the official market by N13.70 to close at N1,847.72/£1 versus the preceding session’s N1,834.02/£1, and slumped against the Euro by N11.56 to sell at N1,602.29/€1 versus N1,590.73/€1.
Also, the Nigerian Naira tumbled against the greenback during the trading day by N5 to quote at N1,385/$1 compared with the previous rate of N1,380/$1, and at the GTBank FX desk, it traded flat at N1,370/$1.
The poor performance of the domestic currency could be attributed to liquidity shortage at the official currency market on Monday, which came amid surging demand for international payments. At $76.50 million, interbank liquidity printed higher across 79 deals, up from the $43.572 million reported on Friday.
Nigeria’s gross external reserves declined to $48.45 billion amid a month-long decline in inflows, amid uncertainties in the global commodity market. The depletion of foreign reserves could be partly attributed to the Central Bank of Nigeria’s intervention in the FX market.
The market remains perturbed by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market, while boosters, including oil prices, continue to look rocky due to stalled discussions and unclear ceasefire negotiations between the US and Iran.
A look at the cryptocurrency market, Bitcoin (BTC) has been rejected near $79,000 three times in eight sessions, leaving the level as the de facto ceiling of its current trading range even as major cryptocurrencies trade lower over the past day. It lost 0.9 per cent to sell at $77,003.61.
Analysts say that upcoming US Federal Reserve policy decisions and top tech firms’ earnings this week could provide the catalyst to push bitcoin decisively above $80,000.
The market also continued to weigh Iran’s interim deal proposal to reopen the Strait of Hormuz, which failed to advance over the weekend. The White House said US officials were discussing the latest Iranian proposal but maintained “red lines” on any deal to end the eight-week war.
Solana (SOL) dropped 1.8 per cent to $84.25, Ripple (XRP) went down by 1.6 per cent to $1.39, Ethereum (ETH) depreciated by 1.3 per cent to $2,290.00, Binance Coin (BNB) declined by 0.5 per cent to $625.18, and Cardano (ADA) fell by 0.2 per cent to $0.2480.
However, Dogecoin (DOGE) rose by 2.0 per cent to $0.1002, and TRON (TRX) appreciated by 0.2 per cent to $0.3242, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Aduragbemi Omiyale
One of the leading salt makers in Nigeria, NASCON Allied Industries Plc, has set its eyes on some strategies aimed to deliver more value to shareholders.
The chief executive of the company, Mrs Aderemi Saka, said efforts are being made to surpass the performance of last year.
In the 2025 financial year, the organisation recorded a 27 per cent growth in revenue, while post-tax profit grew by over 100 per cent to N33.5 billion, with the earnings per share (EPS) expanding by 115 per cent to N12.41 from N5.77 Kobo in the previous year.
The impressive performance, attributed to a clear strategic vision, disciplined execution and sustained focus on cost-saving initiatives across production, logistics and fleet management, resulted in a 200 per cent increase in dividend payout to shareholders to N6 per share.
Mrs Saka, at the firm’s Annual General Meeting (AGM) in Lagos, said the strategic priorities for the coming year include deeper cost optimisation, expanded market penetration, strengthened energy diversification and sustainability initiatives, as well as accelerated digital transformation and process automation.
Earlier, the chairman of NASCON, Mr Olakunle Alake, informed shareholders that the achievements for last year were due to improved operational efficiency, strict cost management and the dedication of the company’s workforce.
“The operating environment in 2025 was characterised by economic volatility, persistent inflation and structural changes across key sectors. Yet, NASCON remained resilient and strategically focused, delivering outstanding value to shareholders,” Mr Alake said.
He noted that operational sustainability remains a core pillar of the organisation’s strategy, stressing that during the year, NASCON introduced Compressed Natural Gas (CNG) trucks into its logistics fleet to reduce fuel costs and minimise exposure to diesel price volatility.
In addition, the company’s state-of-the-art salt refinery, its largest production facility, now runs entirely on natural gas, significantly boosting efficiency while reinforcing NASCON’s commitment to environmental sustainability.
A director in the organisation, Mrs Tonya Lawani, emphasised that the firm remains firmly committed to the principles that have driven its excellent performance, noting that NASCON approaches the new financial year from a position of strength, with further opportunities for growth and improvement.
Speaking on behalf of shareholders, Mr Faruk Umar expressed strong confidence in the company’s trajectory, citing NASCON’s rising share price, which recently crossed the N100 mark, and projecting further appreciation.
He commended the quality of the Board and management team, noting that strong leadership and recent executive appointments have positioned the entity to deliver even greater value to all stakeholders.
By Adedapo Adesanya
Brent futures gained $2.90 or 2.8 per cent to trade at $108.23 a barrel on Monday as peace talks between the United States and Iran stalled and shipments through the Strait of Hormuz remained limited, keeping global oil supplies tight.
Also, the US West Texas Intermediate crude rose by $1.97 or 2.1 per cent to $96.37 per barrel after Iran reportedly offered to reopen the Strait of Hormuz, but insisted US nuclear talks be postponed, a condition the Americans are unlikely to accept.
Iran presented the proposal through regional mediators to reopen the waterway and move toward ending the war first, while postponing nuclear negotiations. The proposal would separate shipping security from the dispute over uranium enrichment, where negotiations have deadlocked.
The stalled negotiations are leading to fears for the global economy as both nations are no closer to a lasting truce after US President Donald Trump cancelled American participation in talks with Iran.
President Trump discussed a new Iranian proposal on resolving the war with Iran with his top national security aides, with the conflict currently in a stalemate and energy supplies from the Middle East region reduced.
The market is also beginning to price the supply story beyond crude. Higher petrol and heating oil prices are feeding concern that the conflict is moving into transport, manufacturing, and consumer costs.
At least seven ships – mainly dry bulk vessels – have crossed the Strait of Hormuz in the past 24 hours, in line with muted activity in recent days. That represents a fraction of the average 140 daily passages before the Iran war began on February 28, when around 20 per cent of global oil supplies passed through the strait.
In addition, six tankers loaded with Iranian oil have been forced back to Iran by the US blockade in recent days.
Also, Russian President Vladimir Putin praised the Iranian people for battling to stay independent in the face of US and Israeli pressure and said Russia would do all it could to help Iran.
Major global central banks are set to hold interest rates steady this week.
The European Central Bank (ECB) will meet on Thursday, with a ceasefire easing the pressure on it for an immediate interest rate hike. Higher interest rates increase consumer borrowing costs, which can reduce economic growth and oil demand.
Traders are betting that the US Federal Reserve, ECB, Bank of Japan, and Bank of England will all maintain rates at current levels.
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