Economy
FG Earned N69b from Solid Minerals in 2015 Buoyed by Cement
By Modupe Gbadeyanka
A new report released by the Nigerian Extractive Industries Transparency Initiative (NEITI) has revealed that a total of N69.20 billion was generated from the solid minerals industry in 2015.
NEITI, in the 2015 Mineral Audit Report, explained that this figure was against N55.81 billion made earlier from the sector, which represented 23.98 percent increase.
The agency said in the report that the value of solid minerals exports in 2015 stood at $9.733 million, which was 1.45 percent of non-oil exports for the year.
It noted that Lead and Zinc topped the chart with 79 percent valued at $7.7 million, while 175 ounces of gold valued at $122,000 were exported during the period.
NEITI, which released the report on Sunday after its approval by the National Stakeholders Working Group, which is the board of NEITI, revealed that the solid minerals sector contributed 0.12 percent to Nigeria’s Gross Domestic Product (GDP) in 2015, a marginal increase of 0.01 percent on the 0.11 percent contribution of the sector to GDP in 2014.
The audit report further disclosed that the total production of solid minerals in the country stood at 39.27 million tons.
This, it stressed, represents a reduction of 17 percent from the 47.1 million tons produced in 2014.
The drop in 2015’s production was attributed to insecurity in parts of the country and more stringent approval process for explosives used in mining.
However, while mineral production reduced, government revenues went up in the same year.
“This increase in revenue was due to the growth in taxes collected from the sector and review of royalty rates paid by companies which came into effect within the year under review,” the report stated.
NEITI’s previous solid minerals audit reports had recommended upward review of Nigeria’s royalty rates to align with prevailing industry and present day realities.
“This report shows evidence that the contribution of the solid minerals sector to government revenues and macro-economic indicators is beginning to improve, even if marginally,” said Waziri Adio, NEITI’s Executive Secretary. “The sector could definitely contribute more to revenues, job and wealth creation, exports, imports substitution, industrial development and overall national growth.”
“But there is a sign of progress already,” Adio added. “What we need to do is to build on, deepen and sustain this early promise to ensure that the country returns to being a major mining destination and maximizes the abundant opportunities offered by the sector”.
“Faithful and sustained implementation of the roadmap developed by the Ministry of Mines and Steel Development and of the recommendations in this report will be necessary.”
The report highlighted the specific contributions by companies and states to the sector revenue growth and development.
“Cement manufacturing companies were the major revenue contributors to the sector, accounting for over 60 percent, while construction companies and real mining companies contribute about 31 percent and 8% respectively.
For instance, three states- Ogun, Kogi and Cross River and the FCT accounted for about 70 percent of the production volumes in 2015. However, Ogun state topped the table with 36 percent.”
According to the report, a total of 4,305 mineral titles were valid in 2015. It was learnt that 204 were mining leases, 657 were for small scale mining, 1,865 were for quarrying licenses while exploration licenses accounted for the remaining 1579.
It noted that 1,220 of the 4,305 mining titles were issued in 2015 alone.
Mr Adio, the NEITI Executive Secretary, disclosed that the NEITI 2015 Oil and Gas report will be released next month. He also reaffirmed the commitment of the Board to ensuring that its reports are more timely.
He said “resources and processes permitting, NEITI plans to clear the backlog of reports by the middle of 2018. Our goal is not just to make our reports more timely but also to make them as real-time as possible to enhance their utility and relevance.”
“We are finalizing the procurement process of the 2016 reports and will soon commence the procurement for the 2017 reports. We are also working hard to automate our data collection and to mainstream the EITI process”.
“Once we achieve this, we hope to then concentrate more on adding extra value to the country through cutting-edge analyses, modelling and forecasting, and setting agenda for more prudent and accountable application of natural resources for the benefits of all Nigerians,” Mr Adio stated.
The just released 2015 solid minerals audit report recognized the progress being made by the government towards repositioning the sector to be a major driver of the economic and revenue diversification agenda of the present administration.
To sustain this growth and further enhance the capacity of the sector to contribute to the economy, the report called for “the speedy release of the N30 billion solid minerals development fund recently approved by the Federal Executive Council to the intended beneficiaries in order to support some of the activities already stipulated in the Roadmap for the sector”.
The report also called for the improvement of the economic value of Nigeria’s minerals across the value chain before export in order to maximize their potentials and contributions to the growth of the Nigerian economy, while a ban should be placed on the importation of some minerals like gypsum, barite and kaolin which Nigeria has in good quality and quantity.
As part of measures to curb the activities of illegal miners resulting in loss of revenues to government and ensure the security of field officers, the NEITI report recommended the “re-introduction of mines police to protect the officers, reduce the activities of illegal miners and subsequently increase production and investments in the sector. Government should also build the capacity and equip the states’ mines officers and surveillance teams so they can effectively verify production figures and accurately calculate royalty payments.”
The report underscored the need for synergy between relevant government agencies to ensure that all minerals export including samples have permits duly issued by the Mining Inspectorate Department while urgent measures should be taken by government to curb multiple taxation in the sector in line with its policy on Ease of Doing Business in the country.
NEITI’s first intervention in the solid minerals sector began with the conduct of a scoping study in 2011, followed by an independent audit of the sector in 2012 which covered the years 2007-2010.
The six cycles of audit so far conducted by NEITI in the sector show that Nigeria earned a total of N271.77billion from 2007 to 2015.
The NEITI 2015 solid minerals audit was conducted by Amedu Onekpe & Co, a Nigerian audit firm selected through international competitive procurement process.
The audit covered 481 companies that made royalty payments in that year. The process specifically reconciled the payments made by 42 companies to government receipts. These 42 companies met the materiality threshold of N3million royalty payment set by NEITI which accounted for about 87 percent of the total royalty payments made in the sector, NEITI said.
The report also has comprehensive information on financial flows in the sector, governance and process issues and the implications for revenues tracking, computation and management, it added.
By Adedapo Adesanya
Brent crude prices fell by $3.05 or 3.37 per cent to $87.33 per barrel on Friday, the lowest level since early March, triggered by expectations of an imminent peace agreement between the United States and Iran.
Also, the US West Texas Intermediate (WTI) crude finished at $84.88 a barrel after it gave up $2.83 or 3.23 per cent. It was its lowest level since April 17.
Reuters reported that a memorandum between the US and Iran to halt the war in the Gulf could be signed as soon as Sunday, citing sources.
The sources indicate that the US would immediately begin releasing billions of Dollars in frozen Iranian assets and waive sanctions on its oil exports, in return for Iran opening the strait.
The proposals also include discussion of possible war reparations for Iran and dropping longstanding US demands for limits on Iran’s missile program, the sources were quoted as saying.
Meanwhile, Iranian Foreign Minister Abbas Araqchi said on Friday that a memorandum of understanding had not yet been signed and could still change.
He also said that management of the Strait of Hormuz would not return to the pre-war era, that sovereignty over the strait belonged to Iran and Oman, and that Iran would secure safe passage for ships through it.
US President Donald Trump called off threatened air strikes against Iran on Thursday, while it was reported that final negotiations on the memorandum would focus on nuclear and economic issues but would exclude discussions about Iran’s missile programme.
On Thursday, Iran announced a complete closure of the Strait of Hormuz, saying it would fire on any ship trying to pass through.
Traffic through the strait, which normally carries a fifth of global oil and liquefied natural gas shipments, has been extremely limited as a result of the war.
The US military, however, said on social media that commercial ships continued to transit the waterway.
Goldman Sachs lowered its 2027 average Brent forecast to $80 a barrel on higher supply and lower demand, but expects prices to exceed the 2025 average on stockpiling of OECD commercial oil stocks and a security premium for disruptions.
The Organisation of the Petroleum Exporting Countries (OPEC) on Thursday lowered its forecast for 2026 world oil demand growth to 970,000 barrels per day from a previous 1.17 million barrels per day, its second straight downward revision.
By Modupe Gbadeyanka
The Lagos-based Dangote Petroleum Refinery has been described by Standard Bank Group as a transformational industrial project with far-reaching implications for Nigeria and Africa.
The company, which is Africa’s largest financial institution, gave this description after a tour of the facility recently.
Standard Bank, the parent company of Stanbic IBTC Holdings, has promised to support the planned listing of the 650,000 barrels per day refinery and expressed readiness to finance future expansion projects across the continent.
The chief executive of the lender, Mr Sim Tshabalala, said, “We are here because the Dangote Group is a large and important global player and a significant force on the African continent.”
“Standard Bank is the largest financial institution in Africa, and we have partnered with Dangote on a variety of initiatives. We are here to lend support, to see this magnificent refinery and to discuss Vision 2030 and how we can continue supporting the Group’s growth ambitions,” he added.
Mr Tshabalala disclosed that Standard Bank intends to play a leading role in the refinery’s planned Initial Public Offering and future growth initiatives.
“As Dangote lists, there is an IPO coming up, and we are a leading player in that process,” he said, adding that, “As the group continues to expand in Nigeria and across Africa, there will be opportunities for financial advisory services and balance sheet support, and we stand ready to provide both.”
He further described the refinery as “a wonder of the world,” noting that its impact is already being felt through stronger foreign exchange earnings, improved balance-of-payments performance and enhanced energy security.
“This is a wonder to behold. It is massive, productive and transformative. It is already making a significant contribution to Nigeria’s economy through its impact on foreign reserves, the balance of payments and the lives of ordinary Nigerians,” he said.
The Group Vice President for Oil and Gas at Dangote Industries Limited, Mr Devakumar Edwin, said the visit represented a significant milestone in a partnership that began during the refinery’s construction phase.
“The bank visited us during construction and understood the scale of what we were building,” Mr Edwin said. “Today, the refinery is fully operational, and they can see what their support has helped to create. It is like nurturing a tree and eventually seeing it bear fruit.”
He added that both organisations are exploring opportunities to deepen collaboration as Dangote expands its industrial footprint across Africa.
Also speaking, the chief executive of Dangote Petroleum Refinery, Mr David Bird, said the visit highlighted the importance of long-term partnerships in delivering large-scale industrial projects.
“Standard Bank has been one of our strongest supporters throughout the history of the refinery and the broader Dangote Group.
“This visit was an opportunity to demonstrate what that support has enabled. Seeing is believing, and it allows our partners to appreciate the scale of what has been achieved,” Mr Bird stated.
The visit also coincided with a major operational milestone for the refinery, which has now exceeded its original design capacity.
Mr Bird disclosed that the refinery recently completed performance test runs at 700,000 barrels per day, above its nameplate capacity of 650,000 barrels per day.
“We have always believed there was engineering flexibility built into the design,” he said. “Achieving sustained production of 700,000 barrels per day is a testament to the technical capability of our people and the strength of the systems we have built.”
By Adedapo Adesanya
Nigeria produced about 1.530 million barrels of crude oil per day in May 2026, beating its Organisation of Petroleum Exporting Countries (OPEC) quota by 42,000 barrels per day. In the preceding month, the country only produced 1.489 million barrels per day.
In the latest OPEC’s Monthly Oil Market Report (MOMR), it was also revealed that Iraq in April supplied 1.494 million barrels per day while in May, it produced 1.759 million barrels per day, an increase 265,000 barrels per day; Saudi Arabia, 6.879 million barrels per day in April, 7.010 million barrels per day in May, an increase of 131,000 barrels per day; United Arab Emirate (UAE), 2.021 million barrels per day in April and in May 2.111 million barrels per day, an increase of 90,000 barrels per day while Venezuela, 1.136 million barrels per day in April and 1.179 million barrels per day in May, an increase of 43,000 barrels per day.
Using secondary sources, Nigeria’s production decreased from 1.520 million barrels per day in April to 1.519 million barrels per day; Saudi Arabia, 6.755 million barrels per day in April and 6.912 million barrels per day in May; UAE, 2.023 million barrels per day in April, 2.110 million barrels per day in May; and Venezuela, 1.036 million barrels per day in April and 1.072 million barrels per day in May.
Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in a statement by its Head, Media and Corporate Communications, Mr Eniola Akinkuotu, confirmed that Nigeria, in May, met 102 per cent of OPEC quota as production hit an 11-month high.
According to it, Nigeria’s oil production witnessed an upswing in May 2026, averaging 1,530,354 barrels of crude oil and 170,446 barrels of condensates per day, bringing the total combined production to 1, 700, 800 barrels per day and consolidating Nigeria’s position as Africa’s largest oil producer.
It stated that the average crude oil production recorded in May represents 102 per cent of Nigeria’s 1.5mbpd of production quota allocated by OPEC.
It explained that production performance during the review period remained robust, with combined crude oil and condensate output ranging between a low of 1.51 million barrels per day and a peak of 1.86 million barrels per day.
The organisation added that the May 2026 production figures represented the highest recorded by Nigeria since July 2025, when output surged to 1,712,282.
NUPRC said: “In strict crude oil terms (excluding condensates), the 1.53 million barrels recorded in May 2026 represents the highest Nigeria has witnessed since January 2025 when crude oil production hit 1.538 mbpd.”
“On a month-on-month basis, production rose by 2.77 per cent in May 2026 as against 1.48mbpd in April. The broader production trend over the last five months has also remained positive.
“Combined crude oil and condensate output increased from 1.48 mbpd in February to 1.54 mbpd in March, 1.66 mbpd in April, and then 1.7 mbpd in May, underscoring sustained growth in Nigeria’s hydrocarbon production levels.
“Among production streams, Bonny Terminal led the pack with a total blend of 293,870 bpd, closely followed by Forcados Terminal at 289,900 bpd. Qua Iboe ranked third with 173,360 bpd, while Escravos Oil Terminal contributed 135,470 bpd. Odudu (Amenam Blend) completed the top five production streams, accounting for 63,250 bpd during the month under review.”
The commission attributed the rise in production to a sustained positive momentum as operations remained stable throughout the reporting period with no significant pipeline or facility outages recorded.
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