Tag: Solid Minerals

  • INC decries non legislative harmonisation of PIA, Solid minerals Acts

    INC decries non legislative harmonisation of PIA, Solid minerals Acts

    The Ijaw National Congress (INC), has decried the non harmonisation of the Petroleum Industry Act (PIA) 2021 with the Solid Minerals Act.

    Prof. Benjamin Okaba, Global President INC worldwide while briefing the media on Saturday in Abuja described the development as a “systemic injustice” against the people of the Niger Delta.

    He explained that the INC was compelled to address the issue in view of the “stark and discriminatory” disparity in the governance of the two sectors by their various Acts.

    He noted that a comparative analysis revealed not a simple difference in administrative approach, but a deliberate and calculated legislative framework designed to militarise, plunder, and marginalise the Niger Delta while affording other regions a gentler, more equitable regime for their resources.

    He said that the evidence was irrefutable as the PIA  Act 2021 and the Mining Act 2007 when read side-by-side, revealed a “Nigeria that operates a two-tiered system of resource justice”

    The INC global president listed areas of legislative disparities against the Niger Delta region to include host community benefits, policy area, environmental remediation, security approach resource control and revenue allocation.

    According to him, in view of the evidence, it is therefore imperative for a legislative harmonisation of both Acts, and called for the immediate legislative harmonisation.

    “The National Assembly must initiate an amendment to the PIA to bring its community benefit provisions, environmental obligations, and ownership principles in line with the more equitable standards of the Nigerian Minerals and Mining Act. This includes, as a minimum, a review of the three per cent and 30 per cent allocations.

    “The Federal Government must immediately withdraw the Joint Task Force from the Niger Delta and adopt a civil and regulated security approach, consistent with the approach in the solid minerals sectors.

    “The long-term solution to this perennial crisis is a return to the practice of true federalism and derivation-based resource control, as practiced in the First Republic, where regions managed their resources for their development.

    “The Niger Delta is not a colony of Nigeria. We can no longer accept laws that treat our people and our environment as sacrificial lambs for national unity.”

    He explained tht the PIA offered three per cent of annual operational expenditure from oil companies for host communities, but the Mining Act mandates that operators conclude a Community Development Agreement (CDA) with their hosts, addressing scholarships, employment, infrastructure, and enterprise development.

    He added that the three per cent was rejected by the Niger Delta region because the region viewed as insulting given the decades of monumental environmental devastation and socio-economic neglect.

    “Furthermore, this contribution is not from profit but from operational cost, and it is mandated to be managed through a Trust Fund, effectively sidelining elected state governments and traditional institutions, reducing them to “siddon lookers” in the words of Bayelsa State’s Deputy Governor.

    “Crucially, the Act imposes a collective punishment clause, holding entire communities financially liable for vandalism of oil assets, a provision that is unjust, unconstitutional, and inflammatory, but in contrast, there is no collective punishment clause in the mining act.

    “While the PIA reinforces the total federal ownership of oil, the Mining Act, though also declaring federal ownership, has historically tolerated artisanal and small-scale mining by individuals and cooperatives across northern and western states,” he said.

    According to him, this operational laxity grants a de facto economic participation that is ruthlessly denied to the people of the Niger Delta.

    “Also the approach to environmental protection and remediation further highlights the bias, because in spite of the PIA’s provisions against gas flaring, it includes a dangerous loophole allowing the Minister to permit it, rendering the prohibition weak.

    “The environmental degradation from decades of oil spills and gas flaring has been catastrophic, destroying livelihoods and poisoning our ecosystem.

    “Meanwhile in the solid minerals sector, the Mining Act explicitly requires license holders to minimise environmental impact and rehabilitate mined land to its natural or predetermined state .

    “While enforcement is a challenge, the legal obligation is clear and unequivocal, lacking the ministerial loopholes present in the PIA.”

    Okaba further said that with the government deployment of the Joint Task Force (JTF) Operation Restore Hope since 2002 to secure oil infrastructure and prevent local refining, communities in the region had been turned into war zones.

    “Our people are subjected to human rights abuses, all to protect oil assets while denying us the benefits from them.

    “However there is no JTF in mining states. In spite of widespread illegal mining, the federal government only announced plans for mining marshals as recently as March 2024, and even that has not been fully activated.

    “This represents a deliberate non-militarisation of the solid minerals sector, allowing for a more permissive environment that stands in stark contrast to the repression in the Niger Delta.

  • FG generates N1.137tn from solid minerals 2007-2023 – NEITI report

    FG generates N1.137tn from solid minerals 2007-2023 – NEITI report

    The Nigerian Extractive Industries Transparency Initiative (NEITI) said the solid minerals sector contributed ₦1.137 trillion in direct payments to various government levels from 2007 to 2023.

    NEITI disclosed this on Wednesday in Abuja while presenting the 2023 Solid Minerals Audit Report, the 16th audit cycle, which provided a comprehensive overview of the sector’s contributions from 2007 to 2023.

    Conducted by indigenous firm Haruna Yahaya and Co., the report covered the solid minerals industry’s economic contributions, revenue streams, and exports, providing recommendations for sector reforms.

    The report showed a substantial increase in government receipts from ₦7.59 billion in 2007 to ₦341.27 billion in 2022, a 44-fold rise, indicating solid sector growth.

    The 2023 report underscored the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding ₦1 trillion.

    It disclosed that in 2022, the sector generated ₦345.41 billion, with a reconciled final revenue of ₦329.92 billion.

    “Company payments analysis indicated that total government revenue, including reconciled and unilaterally disclosed figures, reached ₦401.87 billion in 2023.

    “Key revenue streams included VAT (₦128.32 billion), FIRS taxes (₦370.09 billion), Education Tax (38.64 per cent), Company Income Tax (10.64 per cent), and royalties (₦9.06 billion).

    “Discrepancies initially amounted to ₦301.6 billion but were reconciled down to ₦100 million, demonstrating NEITI’s transparency commitment,” the report said.

    The production and export data showed 95.07 million tonnes of minerals produced in 2023, with a significant export volume of 4.32 million metric tonnes, valued at ₦117.29 billion.

    The report highlighted top mineral-producing states, including Ogun, Kogi, and Rivers, with Ogun leading production.

    Revenue contributions were led by Osun, Ogun, and Kogi states.

    The report also identified the solid minerals sector’s Gross Domestic Product (GDP) contribution at 0.83 per cent in 2022, with incremental growth to 0.75 per cent in 2023, underscoring untapped potential.

    It reiterated policy measures and reforms needed to unlock the sector’s capacity to contribute more significantly to Nigeria’s economic diversification.

  • We’ll work with governors to properly harness solid mineral resources – Alake

    We’ll work with governors to properly harness solid mineral resources – Alake

    Dele Alake, the Minister of Solid Minerals Development, has noted that  the Federal Government, is making frantic efforts  to work with state governments to properly harness Nigeria’s solid mineral resources.

    The media personnel cum Minister made this disclosure when Governor Abdullahi Sule of Nasarawa State paid him a courtesy visit on Friday in Abuja.

    He said, “The ministry will work with governors to harness mineral resources for maximum socio-economic development of the country.

    “Nasarawa State is very significant in terms of the development of the mineral sector, and we are putting the mechanisms together.

    “We want to make sure that the nation derives maximum benefits from this God given gift of minerals that are in abundance in Nigeria.”

    According to Alake, solid minerals is the next petroleum in Nigeria, saying that the nation would harness and utilise the resources efficiently and effectively.

    The minister, however, emphasised the need for effective synergy and coordination in all the dynamics surrounding minerals exploration, exploitation and judicious utilisation of the resources.

    He thanked the governor for the visit, adding that partnerships between the federal government and states would promote and bring strong development to the sector.

  • Why I was drafted into the Solid Minerals ministry – Dele Alake

    Why I was drafted into the Solid Minerals ministry – Dele Alake

    Solid minerals minister, Dele Alake has revealed why he was drafted into the ministry by Nigeria’s president, Bola Ahmed Tinubu.

    He noted  that many people expected that the president would make him the minister of information due to his background, expertise, and track record in perception and information management.
    Continuing, he said that president Tinubu gave everyone a shocker.

    Alake made this known  on Monday, August 21, in Abuja at his assumption to office as the new minister of solid minerals, adding that the sector holds immense significance for the nation’s economic growth and vitality.

    He stated that President Tinubu’s decision to appoint him to this ministry was based on his recognized sense of responsibility and courage to propel the agenda forward.

    “Now if you all can sit down to analyse the global trend of economic development, you would note that the hydrocarbon that is the oil is fading out and the world is moving towards alternatives like gas, electric cars, and the rest. So what is the next economic growth factor? It is a solid mineral.

    “Given the nature of this sector to our economic growth and vitality of this country which is dear to the heart of Mr President, it’s just very apt and proper for him to send me here because he knows and trusts that I have a demonstrable sense of responsibility and courage to drive the agenda, that is why I am here. We are going to drive that agenda with the full cooperation of everyone.

    “In my world, where I come from, you know you are in the civil service and have your rules and regulations but in my world, there is no strictures, I have been in the civil service as a commissioner before. My modus operandi is results, I really don’t care how you get me the results as long as you use legitimate means to get the result.

    “I am going to set an agenda with focus and objectives, we would get the results. Now we are not going to be allowing civil service structures and scriptures to stifle us out of creativity and flourishing, what we need is attitudinal change.

    “Now when a memo reaches your table, regardless of what the subject matter is, that memo must leave your table within an hour, that is the way I work and whoever doesn’t shape in, ships out.”
  • FG earned N52b from solid minerals in 2017

    FG earned N52b from solid minerals in 2017

    The solid minerals sector contributed N52.75 billion to federation revenue in 2017, a 21% increase on the N43.22 billion contributed by the sector in 2016.

    The information and data followed an independent reconciliation of company payments and government receipts in the sector by the Nigeria Extractive Industries Transparency Initiative (NEITI) in its latest report released in Abuja.

    NEITI’s Director, Communications and Advocacy, Dr. Orji Ogbonnaya Orji made this known in a statement issued at Abuja on Sunday.

    The statement noted that from the sector’s total revenue contribution of N52.75billion, payments to the Federal Inland Revenue Service (FIRS) accounted for N49.162 billion which is about 93% of the total revenues realized during the period under review. Payments to the Mines Inspectorate Department (MID) and Mining Cadastre Office (MCO) amounted to N1.59billion and N2.08billion or about 3% and 4% respectively of the total revenue from the sector.

    NEITI, however, noted, “Except for revenue from MID, there was significant increase in revenue from all other streams” in 2017.

    According to NEITI, “A trend analysis of the revenue flows showed that there has been a very remarkable increase in revenue accruing to the Federation from the solid minerals sector from 2013 to 2017, though 2016 witnessed a decrease of 31.02% compared to 2015.”

    Other revenue flows from the solid minerals according to the NEITI report, include sub-national payments. These are direct payments to states and local governments as a result of national laws, contractual obligations or local regulations which are disclosed as unilateral disclosures by the extractive companies. “The total payment was ₦2.877 billion representing about 5.45% of total government revenue from the sector”, NEITI stated.

    On production, the NEITI Solid Minerals Report disclosed that 35.33 million metric tons of minerals valued at N32.78 billion was produced in Nigeria during the same period. “The production data was based on minerals either used or sold during the year”.

    A breakdown of the production showed that Limestone, Granite and Laterite accounted for 85.72% of the total minerals produced with Limestone alone contributing about 55% of the production volumes. However, in value terms, Granite and Limestone contributed 37.28% and 35.57% respectively.

    On state-by-state contribution, the report highlighted that Ogun State produced the highest quantity of minerals in terms of both volume and value. “The state accounted for over one-third of total production quantity and 23% of the total minerals production value. The contributions by Ogun and Kogi states put together accounted for over half of the total production quantity”. A further analysis showed that the two states led in Limestone as major minerals produced in the states. However, in terms of production value, Ogun, FCT and Kogi states accounted for 23%, 20% and 18% respectively.

    A review of minerals production by states also shows that with the exception of the Federal Capital Territory, there was a material decline in states production in terms of both quantity and value. Total production quantity decreased from 41.87million metric tons valued at N34.09billion in 2016 to 35.33 million metric tons valued at N32.78billion in 2017. The figure represented a decline of 15.64% in production volumes and 3.83% in production value in 2017.

    The NEITI 2017 Solid Minerals report also revealed that Dangote Cement dominated activities in minerals production in 2017. The company alone was responsible for about 46% of the total minerals production that year. Other big players in the sector included Lafarge Cement Plc., CGC Nigeria Limited and Julius Berger Plc. “The four companies produced over 27 million tons of minerals, representing 77.31% of the total minerals production quantity and over 60% of the production value”, the report remarked.

    The sector’s contribution to employment in 2017 was about 0.3% of Nigeria’s total employment, same as the figure recorded in 2016. The report also affirmed that artisanal and small-scale miners currently dominate the sector.

    On the solid mineral sector’s contribution to exports, the NEITI report stated that about 16.34million metric tons of minerals valued at $29.90million was exported in 2017. According to the report, “Nigeria’s total export was about ₦13.60trillion with solid minerals contributing N77.23billion or 0.57% of total export in 2017”.

  • Ogun produced highest tonnes of solid minerals in 2018 – NBS

    Ogun produced highest tonnes of solid minerals in 2018 – NBS

    The National Bureau of Statistics (NBS) has disclosed Ogun produced the highest tonnes of solid minerals in the country in 2018.

    The NBS disclosed this in its State Disaggregated Mining and Quarrying Data for 2018 posted on its website.

    The bureau said the state produced 16.49 million tonnes of solid minerals, representing 30 per cent of the total tonnes of solid minerals produced in the year under review.

    It said Kogi and Cross River states followed closely with 15.13 million and 3.49 million tonnes of solid minerals respectively representing about 27 per cent and six per cent of the total tonnes of the minerals produced.

    Bayelsa and Borno States produced the least tonnes of solid minerals with zero and 8,403.30 tonnes of minerals produced.

    The report, however, said a total of 55.85 million tonnes of solid minerals was produced in the country in the year under review.

    According to the report, limestone was the most produced solid minerals in 2018 with 27.19 million tones, representing about 49 per cent of the total tonnes of minerals produced.

    It said granite and laterite followed closely with 9.62 million and 5.07 million tonnes respectively representing 17 per cent and nine per cent of the total tonnes of minerals produced in 2018.

    The report said garnet and ruby were the least produced solid minerals in 2018.

    Data for the report was supplied administratively by the National Agency for Food Drug Administration and Control and verified and validated by NBS.