The 2019 revenue generated by the solid minerals sector was its highest, accounting for 13 percent of the aggregated sum of N496.28 billion generated over a period of 13 years.
This was disclosed by the Nigeria Extractive Industries Transparency Initiative (NEITI), in a report shared on Sunday.
In the report, it was explained that the “2019 earnings accounted for 16 per cent of the total revenues of N496.28billion that have accrued to the Federation, from the sector, over a period of 13 years (2007 to 2019).
“And it is also the highest since 2007 when NEITI commenced reconciliation of payments in the solid minerals sector.”
It added that the amount accrued to state governments amounted t0 N5.1 billion in 2019, a 42 percent increase from the previous year’s N2.1 billion.
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NEITI stated that taxes from the Federal Inland Revenue Service (FIRS) made up 87.4 (N69.92 billion) percent of the total sum.
States that produce solid minerals received a total of N1.55 billion, as part of their 13 percent derivation share.
The report added that only 74 companies reached the N3 million threshold of materiality from of the 702 companies that pay royalties to the Federal Government.
It stated, “These 74 companies accounted for 87.63 percent of total royalties of N2.50bn paid in 2019, with the top 5 companies – Dangote Cement PLC; Lafarge PLC; Dangote Industries; Julius Berger; Reynolds Construction – paying more than 50% of total royalties.”
