Business
NEITI’s Reveals 2021 Solid Minerals Government Earnings
In a significant disclosure, Nigeria Extractive Industries Transparency Initiative (NEITI) has reveals the government’s earnings from solid minerals in 2021, offering insight into a vital economic sector.
According to NEITI, In 2021, the Federal Government of Nigeria generated N193.59 billion from the solid minerals sector.
Between 2007 and 2021, the sector contributed a total of N814.59 billion, with 2021 marking the highest earnings.
This information was disclosed by the Nigeria Extractive Industries Transparency Initiative (NEITI) during the unveiling of its 2021 Solid Minerals Industry Report in Abuja tagged: “Impact built on blocking leakages to grow revenue’’.
Senator George Akume, the Secretary to the Government of the Federation (SGF), was represented by Dr. Maurice Mbaeri, Permanent Secretary, General Services Office, SGF, during the report’s unveiling.
Dr. Maurice Mbaeri, Permanent Secretary of the General Services Office under the SGF, represented Senator George Akume during the event.
This 12th edition of the report encompasses actual payments made by 1,214 companies within the sector, as well as receipts from three vital government agencies.
The report also delves into the quantities of minerals produced, utilized, and exported from the sector, while providing reconciled data on physical and financial transactions.
Additionally, it includes special verifications of certain processes within the solid minerals industry.
During the report presentation, Orji Ogbonnaya Orji, the Executive Secretary of NEITI, highlighted that the figures indicated a significant increase of N60.32 billion or 51.89 percent growth compared to the 2020 revenue of N116.82 billion.
This positive trend, he noted, signifies a consistent upward trajectory observed in the sector over the past five years.
He said “This contribution, though a significant increase over past years, is still abysmal considering the potentials of the sector to the Nigerian economy,”
Orji explained that the 2021 Solid Minerals report thoroughly reviewed, ascertained, reconciled, and reported all revenues and investment flows associated with the government’s involvement in the solid minerals sector.
Additionally, the NEITI report encompassed tracking balances payable and receivable from financial inflows while monitoring the allocation and utilization of funds intended for the development of Nigeria’s solid minerals industry.
Orji clarified that these funds encompass various initiatives, such as the Natural Resources Development Fund, Solid Minerals Development Fund, the Ministry of Mines and Steel Development’s MinDiver Programme, and the Solid Minerals Development Funds administered through the Small and Medium Industries Equity Investment Scheme, which operates in partnership with the Bank of Industry.
Breaking down the revenues, it was revealed 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.
Orji noted that the revenue deposited into the federation account from the sector over the past 15 years, totaling N818.04 billion, was considerably low when considering the sector’s economic potential.
Regarding production, the report disclosed that the total volume of solid minerals used or sold in 2021 amounted to 76.28 million tons, resulting in a royalty payment of N3.57 billion.
He said “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 added
Orji provided further details, mentioning that a total of 2,045 licenses were issued, including 840 exploration licenses (reflecting a 62.79 percent increase), 771 Small Scale Mining Leases, 255 Quarry Leases, 139 Reconnaissance Permits, and 40 Mining Leases.
Regarding exports, he highlighted that the total minerals exported in 2021 amounted to 142.54 million tons, with a Free on Board (FOB) value of US$101.29 million. This represented a substantial increase of 138.57 percent compared to the US$42.46 million reported in the 2020 report.
China emerged as the primary destination for Nigeria’s mineral exports, representing 97 percent of the export volume and 88 percent of the export value.
Additionally, Nigeria’s minerals found their way to other destinations, including Malaysia, Korea, Thailand, and the United Arab Emirates.
In terms of the solid minerals sector’s contribution to the economy, Orji mentioned that the report indicated a contribution of 0.63 percent to the Gross Domestic Product (GDP).
This showed improvement when compared to previous years, where the sector contributed 0.45 percent in 2020 and 0.26 percent in 2019.
Savannah Energy has shared a trading update on its Nigerian operations and other markets in Africa, including up-to-date cash collections in its Nigerian business.
According to the update, made available on Thursday in Lagos, its gross production in Nigeria averaged 23.1 Kboepd for FY 2024, broadly in line with the prior year’s 23.6 Kboepd, of which 88% was gas (FY 2023: 91%).
On the update, CEO of Savannah Energy, Andrew Knott, said, “I am pleased to provide a FY trading update which demonstrates the continued progress we have made in 2024, a year which saw the highest level of cash collections ever recorded by our Nigerian business. 2025 is expected to be an exciting year for our Company: we have a large planned operational programme in Nigeria which is anticipated to enhance both our oil and gas production levels and capacity; we intend to progress our R3 East oil development project in Niger; we continue to pursue key acquisitions in the upstream oil and gas space; and we continue to seek to build our power business.
“Fundamentally, Savannah remains unequivocally an “AND” company, seeking to deliver strong performance both for the short AND long term across multiple fronts, and pursuing growth opportunities in both the hydrocarbon AND power sectors.”
The update It also shows that it generated a Total Income of US$393.6 million in 2024, compared to FY 2023’s US$289.8 million. This consists of Total Revenues of US$258.7 million and Other operating income of US$134.9 million.
The report also shows that Savannah’s FY 2024 Total Revenues were ahead of the previously issued financial guidance of greater than US$245 million, while FY 2024 financial guidance is reiterated for Operating expenses plus administrative expenses at ‘up to US$75 million’. The company expects its FY 2024 capital expenditure to come in lower than planned (previously guided at ‘up to US$50 million’) due to the phasing of spend.
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According to the update, Savannah’s cash collections in 2024 amounted to US$248.5 million, a slight increase from the US$206 million it received in 2023. The report further shows that its cash balances as at 31 December 2024 stood at US$32.6 million, compared to the 31 December 2023 figure of US$107.0 million.
The report shows that the company’s midstream subsidiary, Accugas Limited, had as at 31 December 2024 drawn down on its NGN332 billion of the NGN Transitional Facility, with the resulting funds being converted to US$, which, along with cash held, was used to partially prepay the existing Accugas US$ Facility, leaving a balance as at 31 December 2024 of approximately US$212.3 million.
The report also provided new updates on Accugas’ US$45 million Uquo Central Processing Facility (“Uquo CPF”) compression project in Nigeria, noting that its commissioning which will enable the expansion of gas production in the medium term is well underway.
The report highlighted the progress being made in the procurement process of long lead equipment in Nigeria for a potential two-well drilling campaign on the Uquo Field in H2 2025, with an additional gas development well expected to add up to 80 MMscfpd of supplemental production capacity and a potential exploration well targeting an Unrisked Gross gas initially in place (“GIIP”) of 154 Bscf (25.7 MMboe) of incremental gas resources.
The update shows that progress is also being made in the planned Savannah acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, whose principal asset is a 49% non-operated interest in the Stubb Creek oil and gas field (“Stubb Creek”), with regulatory approval and completion being targeted in Q1 2025. Following the completion of the acquisition, Savannah intends to commence an expansion programme which is anticipated to increase Stubb Creek gross production from an average of 2.7 Kbopd in 2024 to approximately 4.7 Kbopd.
In Niger, Savannah continues to seek to progress its 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger, while it continues to push for a potential alternative transaction structure to acquire a material stake in producing oil and gas assets in South Sudan as previously announced on 20 December 2024.
On the renewable energy front, the update shows that Savannah has up to 696 MW of renewable energy projects currently in motion, including the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon. A firm believer in Africa’s transition to renewable energy, Savannah continues to target a portfolio of up to 2 GW+ of power projects in motion by the end of 2026.
The Nigerian Economic Summit Group (NESG) has projected that the country has the potential to achieve a 5.5% growth in Gross Domestic Product (GDP) if critical policy reforms are sustained.
This was disclosed on Thursday during the launch of the NESG’s 2025 Macroeconomic Outlook report.
Speaking at the event, the Chief Economist and Director of Research & Development at NESG, Dr. Olusegun Omisakin, highlighted the need for more efficient policy implementation to unlock Nigeria’s economic potential.
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“We believe at the optimal level, if we embark on more efficient policy reforms, the Nigerian economy has the potential, the GDP to end up at 5.5 per cent, and we believe that this is achievable,” Omisakin stated.
More to follow……….
The Central Bank of Nigeria (CBN) has announced the release of the Nigerian Foreign Exchange (FX) Code, a set of guidelines designed to promote ethical conduct among authorized dealers in the country’s FX market.
In a statement, the apex bank disclosed that the official launch of the Code would take place on Tuesday, January 28, 2025, at the CBN Head Office Auditorium in Abuja.
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“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote the ethical conduct of authorised dealers in the Nigerian Foreign Exchange Market,” the statement read.
The introduction of the FX Code is expected to enhance transparency, accountability, and professionalism within Nigeria’s foreign exchange ecosystem, aligning it with global best practices.
The event is anticipated to attract key stakeholders in the financial and banking sectors, as well as representatives from authorized FX-dealing institutions across the country.
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