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NEITI says 2,119 firms fail to remit N2.76 bln to federation account in 2020

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Nigeria Extractive Industries Transparency Initiative (NEITI) has accused 2,119 companies operating in the solid minerals industry of failure to remit N2.76 billion to the federation account in 2020.

The executive secretary of NEITI, Orji Ogbonnaya Orji, who said this on Sunday while presenting the 2020 Solid Minerals report to industry stakeholders in Abuja, noted that the companies’ liabilities resulted from failure to pay statutory annual service fees for respective mineral titles.  

The NEITI Independent Solid Minerals Industry Report tracked and reconciled financial flows, checked quantities of minerals produced, utilised and exported in 2020.

He said 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 last 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,” he said.

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“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.”

He also said the total revenue contributions from the sector in 2020 rose to N128.27 billion, an increase of over 54 percent from N74.85 billion recorded in 2019 despite the COVID-19 pandemic.

Orji added that the NEITI report also revealed that N8.89 billion was shared among the federating units as solid minerals revenue in 2020.

“Breakdown of the figure showed that the Federal Government received N4.07 billion (45.83 percent), states and Local Governments received N2.07 billion and N1.59 billion (23.25 percent; 17.92 percent) respectively, while N1.16 billion (13 percent) was recorded as derivative share.”

The report also disclosed that 71.1 million metric tonnes of minerals were produced in 2020. 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.

Five states of the federation (Ogun, Kogi, Cross River, Edo and Bayelsa states) topped the table, contributing 66 percent of solid minerals produced across the country that year.

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