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 Dipo Olowookere
The local stock market firmed up by 1.13 per cent on Friday as appetite for Nigerian stocks remained strong.
Investors reacted well to the 2026 budget presentation of President Bola Tinubu to the National Assembly yesterday, especially because of the more realistic crude oil benchmark of $64 per barrel compared with the ambitious $75 per barrel for 2025. This year, prices have been between $60 and $65 per barrel.
Business Post observed profit-taking in the commodity and energy sectors as they respectively shed 0.14 per cent and 0.03 per cent.
But, bargain-hunting in the others sustained the positive run, with the consumer goods index up by 3.82 per cent.
Further, the industrial goods space appreciated by 1.46 per cent, the banking counter improved by 0.08 per cent, and the insurance industry gained 0.04 per cent.
As a result, the All-Share Index (ASI) increased by 1,694.33 points to 152,057.38 points from 150,363.05 points and the market capitalisation chalked up N1.080 trillion to finish at N96.937 trillion compared with Thursday’s closing value of N95.857 trillion.
A total of 34 shares ended on the advancers’ chart, while 24 were on the laggards’ log, representing a positive market breadth index and bullish investor sentiment.
Austin Laz gained 10.00 per cent to close at N2.42, Union Dicon also jumped 10.00 per cent to N6.60, Tantalizers increased by 9.80 per cent to N2.69, Aluminium Extrusion improved by 9.78 per cent to N12.35, and Champion Breweries grew by 9.71 per cent to N16.95.
Conversely, Sovereign Trust Insurance dipped by 7.42 per cent to N3.87, Royal Exchange lost 6.84 per cent to trade at N1.77, Omatek slipped by 6.84 per cent to N1.09, Eunisell depreciated by 5.88 per cent to N80.00, and Eterna dropped 5.63 per cent to close at N28.50.
Yesterday, traders transacted 1.5 billion units worth N21.8 billion in 25,667 deals compared with the 839.8 million units sold for N32.8 billion in 23,211 deals in the preceding session, showing a surge in the trading volume by 76.61 per cent, an uptick in the number of deals by 10.58 per cent, and a shrink in the trading value by 33.54 per cent.
By Adedapo Adesanya
Three stocks stretched the bearish run of the NASD Over-the-Counter (OTC) Securities Exchange by 1.21 per cent on Friday, December 19, with the market capitalisation giving up N26.01 billion to close at N2.121 billion compared with the N2.147 trillion it ended a day earlier, and the NASD Unlisted Security Index (NSI) dropping 43.47 points to 3,546.41 points from 3,589.88 points.
The trio of FrieslandCampina Wamco Nigeria Plc, Central Securities Clearing System (CSCS) Plc, and NASD Plc overpowered the gains printed by four other securities.
FrieslandCampina Wamco Nigeria Plc lost N6.00 to sell at N54.00 per unit versus N60.00 per unit, NASD Plc shrank by N3.50 to N58.50 per share from N55.00 per share, and CSCS Plc depleted by N2.91 to N33.87 per unit from N36.78 per unit.
On the flip side, Air Liquide Plc gained N1.01 to close at N13.00 per share versus N11.99 per share, Golden Capital Plc appreciated by 70 Kobo to N7.68 per unit from N6.98 per unit, Geo-Fluids Plc added 39 Kobo to sell at N5.50 per share versus N5.11 per share, and IPWA Plc rose by 8 Kobo to 85 Kobo per unit from 77 Kobo per unit.
During the trading day, market participants traded 1.9 million securities versus the previous day’s 30.5 million securities showing a decline of 49.3 per cent. The value of trades went down by 64.3 per cent to N80.3 million from N225.1 million, but the number of deals jumped by 32.1 per cent to 37 deals from 28 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc finished the session as the most active stock by value on a year-to-date basis with 5.8 billion units valued at N16.4 billion, followed by Okitipupa Plc with 178.9 million units transacted for N9.5 billion, and MRS Oil Plc with 36.1 million units traded for N4.9 billion.
The most active stock by volume on a year-to-date basis was still InfraCredit Plc with 5.8 billion units worth N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.7 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Adedapo Adesanya
It was not a good day for the Nigerian Naira at the two major foreign exchange (FX) market on Friday as it suffered a heavy loss against the United States Dollar at the close of transactions.
In the black market segment, the Naira weakened against its American counterpart yesterday by N10 to quote at N1,485/$1, in contrast to the N1,475/$1 it was traded a day earlier, and at the GTBank forex counter, it depreciated by N2 to settle at N1,467/$1 versus Thursday’s closing price of N1,465/$1.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX) window, which is also the official market, the nation’s legal tender crashed against the greenback by N6.65 or 0.46 per cent to close at N1,464.49/$1 compared with the preceding session’s rate of N1,457.84/$1.
In the same vein, the local currency tumbled against the Euro in the spot market by N2.25 to sell for N1,714.63/€1 compared with the previous day’s N1,712.38/€1, but appreciated against the Pound Sterling by 73 Kobo to finish at N1,957.30/£1 compared with the N1,958.03/£1 it was traded in the preceding session.
The market continues to face seasonal pressure even as the Central Bank of Nigeria (CBN) is still conducting FX intervention sales, which have significantly reduced but not remove pressure from the Naira. Also, there seems to be reduced supply from exporters, foreign portfolio investors and non-bank corporate inflows.
President Bola Tinubu on Friday presented the government’s N58.47 trillion budget plan aimed at consolidating economic reforms and boosting growth.
The budget is based on a projected crude oil price of $64.85 a barrel and includes a target oil output of 1.84 million barrels a day. It also projects an exchange rate of N1,400 to the Dollar.
President Tinubu said inflation had plunged to an annual rate of 14.45 per cent in November from 24.23 per cent in March, while foreign reserves had surged to a seven-year high of $47 billion.
Meanwhile, the cryptocurrency market was dominated by the bulls but it continues to face increased pressure after million in liquidations in previous session over accelerating declines, with Dogecoin (DOGE) recovering 4.2 per cent to trade at $0.1309.
Further, Ripple (XRP) appreciated by 3.9 per cent to $1.90, Cardano (ADA) rose by 3.5 per cent to $0.3728, Solana (SOL) jumped by 3.4 per cent to $126.23, Ethereum (ETH) climbed by 2.9 per cent to $2,982.42, Binance Coin (BNB) gained 2.0 per cent to sell for $853.06, Bitcoin (BTC) improved by 1.7 per cent to $88,281.21, and Litecoin (LTC) soared by 1.2 per cent to $76.50, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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