Economy
Nigeria Generates N814.59bn from Solid Minerals in 14 Years
By Adedapo Adesanya
Nigeria generated N814.59 billion between 2007 and 2021 from the solid minerals sector, with the 2021 earnings of N193.59 billion being the highest in the period under review.
This was disclosed by the Nigeria Extractive Industries Transparency Initiative (NEITI) in its 2021 Solid Minerals Industry Report, tagged Impact Built on Blocking Leakages to Grow Revenue’ unveiled by the Secretary to the Government of the Federation (SGF), Mr George Akume, represented by Mr Maurice Mbaeri, Permanent Secretary, General Services Office.
The report, the 12th in the series, covers actual payments by 1,214 companies operating in the sector and receipts from three key government agencies.
It covers the quantities of minerals produced, utilised and exported from the sector, reconciles the physical/financial transactions and undertakes special verification on some processes.
Presenting the report, Mr Orji Ogbonnaya Orji, Executive Secretary, NEITI, said the figure showed an increase of N60.32 billion or 51.89 per cent growth compared to the 2020 revenue flows of N116.82 billion.
This positive trend, he said, reflected a continuation of the upward positive trajectory observed in the sector over the past five years.
“This contribution, though a significant increase over past years, is still abysmal considering the potentials of the sector to the Nigerian economy,” he said.
Mr Orji said the 2021 Solid Minerals report reviewed, ascertained, reconciled and reported all revenues and investment flows to and from the government in the solid minerals sector.
He said the NEITI report also covered balances payable/receivable from financial inflows, tracked the funds and utilisation meant for the development of solid minerals in Nigeria.
According to Mr Orji, the funds include the Natural Resources Development Fund, Solid Minerals Development Fund, Ministry of Mines and Steel Development’s MinDiver Programme and Solid Minerals Development Funds under the Small and Medium Industries Equity Investment Scheme operated through the Bank of Industry.
A breakdown of the revenues showed that the Federal Inland Revenue Service collected N169.52 billion, the Mining Cadastre Office generated N4.3 billion, and the Mining Inspectorate Department generated N3.62 billion.
He said the revenue to the federation accounts from the sector in the past 15 years, which was N818.04 billion, was significantly low compared to the sector’s economic potential.
On Production, Mr Orji said the report disclosed that the total volume of solid minerals used or sold in 2021 was 76.28 million tons with a royalty payment of N3.57 billion.
“The minerals with the largest production volume in the year under review are granite, limestone, laterite, clay and sand.
“Dangote Plc accounted for the highest production with a total production of 28.8 million tons. Bua and Lafarge accounted for 8.4 and 4.3 million tons, while Zeberced accounted for 3.3 million tons, respectively.
“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,” he said.
The NEITI boss said a total of 2,045 licenses were issued, with exploration licenses accounting for 840 (an increase of 62.79 per cent), Small Scale Mining Leases at 771, Quarry Lease at 255, Reconnaissance Permit at 139 and Mining leases at 40.
On export, he said the total minerals exported in 2021 was 142.54 million tons with a Free on Board value of $101.29 million, an increase of 138.57 per cent from the $42.46 million reported in the 2020 report.
He said China was identified as the principal destination of Nigeria’s mineral exports, accounting for 97 per cent and 88 per cent of the export volume and value while other destinations for Nigeria’s minerals included Malaysia, Korea, Thailand and the United Arab Emirates.
On solid minerals’ contribution to the economy, he said the report revealed that the sector contributed 0.63 per cent to Gross Domestic Product (GDP), while there was an improvement compared to previous years, where it contributed 0.45 per cent in 2020 and 0.26 per cent in 2019.
According to him, the sector has not yet reached its full potential in making a significant impact on the overall Nigerian economy.
He identified a total of N1.06 billion as outstanding company liability to the government within the period under review as a result of the failure of some companies to pay their annual service fees for the respective mineral titles. The annual service fee is a statutory payment by mineral title holders for each cadastral unit on mineral titles.
By Adedapo Adesanya
TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the divestment of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
The Renaissance JV, formerly known as the SPDC JV, is an unincorporated joint venture between Nigerian National Petroleum Company Limited (55 per cent), Renaissance Africa Energy Company Ltd (30 per cent, operator), TotalEnergies EP Nigeria (10 per cent) and Agip Energy and Natural Resources Nigeria (5 per cent), which holds 18 licences in the Niger Delta.
In a statement by TotalEnergies on Wednesday, it was stated that under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil.
Production from these licences, it was said, represented approximately 16,000 barrels equivalent per day in company’s share in 2025.
The agreement also stated that TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the three other licences of Renaissance JV which are producing mainly gas, namely OML 23, OML 28 and OML 77, while TotalEnergies will retain full economic interest in these licences, which currently account for 50 per cent of Nigeria LNG gas supply.
Business Post reports that the conclusion of the deal is subject to customary conditions, including regulatory approvals.
“TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the sale of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
“Under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell to Vaaris its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil. Production from these licences represented approximately 16,000 barrels equivalent per day in the company’s share in 2025.
“TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the 3 other licenses of Renaissance JV, which are producing mainly gas (OML 23, OML 28 and OML 77), while TotalEnergies will retain full economic interest in these licenses, which currently account for 50 per cent of Nigeria LNG gas supply. Closing is subject to customary conditions, including regulatory approvals,” the statement reads in part.
The development is part of TotalEnergies’ strategies to dump more assets to lighten its books and debt.
By Aduragbemi Omiyale
The trading licence of Monument Securities and Finance Limited has been revoked by the regulatory arm of the Nigerian Exchange (NGX) Group Plc.
Known as NGX Regulations Limited (NGX Regco), the regulator said it took back the operating licence of the organisation after it shut down its operations.
The revocation of the licence was approved by Regulation and New Business Committee (RNBC) at its meeting held on September 24, 2025, a notice from the signed by the Head of Market Regulations at the agency, Chinedu Akamaka, said.
“This is to formally notify all trading license holders that the board of NGX Regulation Limited (NGX RegCo) has approved the decision of the Regulation and New Business Committee (RNBC)” in respect of Monument Securities and Finance Limited, a part of the disclosure stated.
Monument Securities and Finance Limited was earlier licensed to assist clients with the trading of stocks in the Nigerian capital market.
However, with the latest development, the firm is no longer authorised to perform this function.
Economy
NEITI Advocates Fiscal Discipline, Transparency as FG, States, LGs Get N6trn in Three Months
By Adedapo Adesanya
The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for fiscal discipline and transparency as data showed that federal government, states, and local governments shared a whopping N6 trillion Federation Account Allocation Committee (FAAC) disbursements in the third quarter of last year.
In its analysis of the FAAC Q3 2025 allocation, the body revealed that the federal government received N2.19 trillion, states received N1.97 trillion, and local governments received N1.45 trillion.
According to a statement by the Director of Communication and Stakeholders Management at NEITI, Mrs Obiageli Onuorah, the allocation indicated a historic rise in federation account receipts and distributions, explaining that year-on-year quarterly FAAC allocations in 2025 grew by 55.6 per cent compared with Q3 of 2024 while it more than doubling allocations over two years.
The report contained in the agency’s Quarterly Review noted that the N6 trillion included 13 per cent payments to derivative states. It also showed that statutory revenues accounted for 62 per cent of shared receipts, while Value Added Tax (VAT) was 34 per cent, and Electronic Money Transfer Levy (EMTL) and augmentation from non-oil excess revenue each accounted for 2 per cent, respectively.
The distribution to the 36 states comprised revenues from statutory sources, VAT, EMTL, and ecological funds. States also received additional N100 billion as augmentation from the non-oil excess revenue account.
The Executive Secretary of NEITI, Mr Sarkin Adar, called on the Office of the Accountant General of the Federation, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) FAAC, the National Economic Council (NEC), the National Assembly, and state governments to act on the recommendations to strengthen transparency, accountability, and long-term fiscal sustainability.
“Though the Quarter 3 2025 FAAC results are encouraging, NEITI reiterates that the data presents an opportunity to the government to institutionalise prudent fiscal practices that will protect the gains that have been recorded so far in growing revenue and reduce vulnerability to commodity shocks.
“The Q3 2025 FAAC results are encouraging, but windfalls must be managed with discipline. Greater transparency, realistic budgeting, and stronger stabilisation mechanisms will ensure these resources deliver durable benefits for all Nigerians,” Mr Adar said.
NEITI urged the government at all levels to ensure the growth of Nigeria’s sovereign wealth and stabilisation capacity, by committing to regular transfers to the Nigeria Sovereign Wealth Fund and other related stabilisation mechanisms in line with the fiscal responsibility frameworks.
It further advised governments at all levels to adopt realistic budget benchmarks by setting more conservative and achievable crude oil production and price assumptions in the budget to reduce implementation gaps, deficit, and debt metrics.
This, it said, is in addition to accelerating revenue diversification by prioritising reforms that would attract investments into the mining sector, expedite legislation to modernise the Mineral and Mining Act, support reforms in the downstream petroleum sector, as well as the full implementation of the Petroleum Industry Act (PIA) to expand domestic refining and value addition.
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