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FG nets N43.2b from solid minerals

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NEITI

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Uche Usim, Abuja

 The Nigerian Extractive Industries Transparency Initiative (NEITI) has released its audit report, revealing that the solid minerals sector contributed N43.22 billion to government coffers in 2016.

A breakdown of the figure shows that taxes collected by the Federal Inland Revenue Service (FIRS) accounted for N40.38 billion or 93.43%, while fees collected by the Mining Cadastral Office stood at N1.15 billion or 2.66%.

The Mining Inspectorate Department (MID) recorded N1.64 billion as royalty payments, an increase of 30.15% over the N1.27 billion reported as royalty payments in 2015.

These are some of the highlights of the 2016 audit report of the solid minerals sector released today by NEITI.

The audit conducted under the EITI principles and standard reconciled payments made by mining companies in terms of taxes, royalty and rents against receipts of such payments by relevant government agencies.

From the report, total minerals production for 2016 was 41.87 million tons valued at N34.09 billion, representing 33% increase on the N25.56 billion reported in 2015.

However, tax collection and payment of other fees for 2016 reduced by 32% when compared to the figure of N63.98 billion for 2015.

The report further disclosed that while six hundred and fifty-one (651) extractive companies made royalty payments in 2016, only fifty six (56) companies that met the materiality threshold of N3 million and above were considered for reconciliation. The companies that met this threshold accounted for 86.87% of the total royalties paid.

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On state-by-state minerals production, Ogun State contributed 33.49% to the total production to top the table, followed by Kogi State with a contribution of 19.7%, while FCT came third with 6.20%.

From the report, minerals production by companies shows that three companies – Dangote Cement Plc, West African Portland Cement Plc, and United Cement Company of Nigeria Limited (UNICEM) contributed 70% of total production in 2016. This shows that the cement sub-sector is still dominant in solid minerals production activities.

Further analysis of production by minerals types shows that limestone was the most produced mineral and accounted for 49.35% of the total solid minerals production in 2016, followed by granite with 31.32%. The least contributions were made by gypsum, iron, talc and amethyst with 0.1% each.

The report also revealed that the solid minerals sector’s contribution to exports in 2016 stood at ₦11.16 billion, representing 3.38% of the N330.01 billion for non-oil exports and 0.13% of total export of ₦8.53 trillion.

From the report, China was a major destination of Nigeria’s solid minerals in 2016, accounting for 53.63%, followed by Spain and India which accounted for 26.48% and 8.90%, respectively.

The report put the Free on Board (FOB) value of the solid minerals exported in 2016 at $40.934 million while the overall contribution of the sector to the country’s GDP was put at ₦87.61 billion representing 0.13 % of the total GDP of N67.9 trillion.

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The sector has witnessed a steady, even if marginal increase in its contribution to the GDP from 0.11% in 2014, 0.12% in 2015 to 0.13% in 2016. The sector also contributed 0.3% to national employment in 2016.

The report also disclosed that a total of 4,575 valid minerals titles spread across the various states of the federation were recorded in 2016. This comprises 1,751 Exploration Licenses, 208 Mining Leases, 1,563 Quarry Leases, and 1,053 Small Scale Mining Leases.

Out of the total valid titles in the MCO register, 1,465 titles were issued in 2016 while 1,030 were revoked and 14 were transferred. The report further stated that 315 Exploration Licenses were issued in respect of the priority minerals identified by government. The priority minerals are gold, lead-zinc, baryte, iron-ore, bitumen, limestone, and coal.

The report revealed that some title holders entered into MOUs with other companies without duly informing the relevant government agencies. As a result, out of the 651 operators that paid royalties, 312 companies representing 48% were not recorded in the MCO register either as valid, revoked or transferred titles for the year.

A striking feature of the report was that the sum of ₦9.923 billion was shared by the three tiers of government in 2016, being the accumulated revenues from 2007 to 2014 from the solid minerals sector.

A breakdown of the figure shows that the  Federal Government got N4.547 billion while states and local governments shared N2.306 billion and N1.778 billion respectively. The sum of N1.289 billion was also shared as derivation.

Further breakdown shows that Ogun State received the highest share of  N369.84 million while Kogi and Cross River states received N317.66 million and N237.10 million respectively.

Other states among the top five recipients are Kano and Oyo states which received N208.83 million and 200.45 million respectively while Ekiti and Bayelsa got the lowest share of N91.25 million and N76.66, respectively.

The release of the 2016 report by NEITI brings to seven in the series of independent reports on the solid minerals sector published as part of efforts to ensure transparency as well as bring local and international attention to the revenues and investment potentials in the solid minerals sector.

The 2016 Solid minerals audit was conducted for NEITI by Tajudeen Badejo & Co, an indigenous accounting and auditing firm.

The independent audit is consistent with NEITI’s mandate and in fulfillment of Nigeria’s obligation to the global Extractive Industries Transparency Initiative (EITI) as an implementing country.

 

The post FG nets N43.2b from solid minerals appeared first on The Sun Nigeria.

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CATHOLIC WORLD

Killing of Christians: Buhari lied to Trump – CAN fumes

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Killing of Christians: Buhari lied to Trump - CAN fumes

The Christian Association of Nigeria (CAN) has reacted to President Muhammadu Buhari’s revelation of his conversation with United States President, Donald Trump, on the massacre of Christians in Nigeria, saying President Buhari was economical with the truth.

President Buhari had on Tuesday, revealed that at the heat of the bloody clashes between herdsmen and farmers in Nigeria, the United States President, Donald Trump, unequivocally accused him of killing Christians.

Buhari said these in his closing remarks at the two-day ministerial performance review retreat held at the Presidential Villa, Abuja on Tuesday.

At a point, the President digressed from his prepared speech and narrated his encounter with Trump on the bloody clashes.

He said he managed to explain to the American leader that the clashes were not about ethnicity or religion.

He said, “I believe I was about the only African among the less developed countries the President of United States invited.

“When I was in his office, only myself and himself, only God is my witness, he looked at me in the face, and asked, ‘Why are you killing Christians?’

“I wonder, if you were the person, how you will react. I hope what I was feeling inside did not betray my emotion, so I told him that the problem between the cattle rearers and farmers, I know is older than me not to talk of him. I think I am a couple of years older than him.

“With climate change and population growth and the culture of the cattle rearers, if you have 50 cows and they eat grass, any root, to your water point, then they will follow it. It doesn’t matter whose farm it is.

“The First Republic set of leadership was the most responsible leadership we ever had. I asked the Minister of Agriculture to get a gazette of the early 60s which delineated the cattle route where they used meager resources then to put earth dams, wind mills even sanitary department.

“So, any cattle rearers that allowed his cattle to go to somebody’s farm would be arrested, taken before the court. The farmer would be called to submit his bill and if he couldn’t pay, the cattle would be sold, but subsequent leaders, the VVIPs (very important persons) encroached on the cattle routes. They took over the cattle rearing areas.

“So, I tried and explained to him (Trump) that this has got nothing to do with ethnicity or religion. It is a cultural thing.”

However, CAN’s Vice President and Chairman of the association in Kaduna State, John Hayab, was not impressed with Buhari’s submission, saying “Buhari and his government will never stop from amusing us with their tales by moonlight because what is happening in Zamfara, Sokoto, Katsina, Birnin Gwari, Southern Kaduna, Taraba, Plateau and others cannot be described as a cultural thing.

He told Punch correspondent in an interview: “President Buhari’s weak story about his conversation with President Donald Trump further confirms why his government does not care about the killings in our country by calling them cultural things.

“Just this (Tuesday) evening, I received a report from the Kaduna Baptist Conference President about the number of their members that have been killed by bandits in Kaduna State from January 2020 to date to be 105 and our President will call it a cultural thing? All we can say is may God save our Nigeria.”

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NATIONAL NEWS

CAMA: Bishop blasts Christian lawmakers

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CAMA: Bishop blasts Christian lawmakers

The Catholic Bishop of Nsukka, Most Rev. Godfrey Onah, has blamed Christians in the National Assembly (NASS), for the passage of the 2020 Companies and Allied Matters Bill (CAMA), signed into law by President Muhammadu Buhari recently.

Bishop Onah, said in a remark during the Sunday Mass that if Christians in NASS had opposed the bill, it would not have been passed into law.

President Muhammadu Buhari had on Aug. 7, signed the CAMA bill into law, giving provision for religious bodies and charity organizations to be regulated by the registrar of the Corporate Affairs Commission (CAC), and a supervising minister.

“The question many Christians have been asking is, where were Christian legislators during the debate of this bill and its passage in the National Assembly?

“Because, if they had opposed this bill on the floor of the house, it would not have been passed and sent to the president for assent.

“I blame Christian legislators for doing nothing and allowing the passage of the 2020 CAMA Act,” he said.

“When I say that Christians are too divided and too selfish, don’t forget that the second in command in this country is a Senior Advocate of Nigeria, a professor of Law and a pastor.”

Onah, however, wondered what the Federal Government wanted to achieve in monitoring how the finances of churches in the country are managed when it contributed no dime to the church, NAN reports.

“Government should focus and monitor its ministries, agencies and other government institutions where it budgets billions of Naira annually and not church offerings.

“Had it been that the government gave allocations to churches and decided to monitor its usage, nobody will question the government,” he said.

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NATIONAL NEWS

Nigerians spit fire over fuel, electricity prices hike

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Increasing Fuel and Electricity Prices

Anger and condemnations, across the country, have continued to trail last week’s take off, of new increases in pump price of petroleum products and electricity tariffs, as directed by Federal Government.

Recall that the Petroleum Products Marketing Company (PPMC) official, D.O. Abalaka announced on Wednesday September 3, on behalf of Nigerian National Petroleum Corporation (NNPC) that the new price of petroleum is now N151.56k per litre instead of N149 – N150 per litre which it was previously.

The new electricity tariff which the Nigerian Electricity Regulatory Commission (NERC) tagged “Service Reflective Tariff” has also come into effect. It requires consumers to pay N53.87 – N66.422 per kwh of electricity.

Outraged consumers of fuel and electricity have therefore warned government to get ready for collision with the masses if it fails to rescind these new prices.

Those who have expressed outrage over the new prices regimes include, the Organized Labour, Nigerian Labour Congress (NLC), Nigerian main opposition political party, Peoples Democratic Party (PDP), Nigeria Employers Consultative Association (NECA) and the Major Marketers Association of Nigeria (MOMAN).

Others are: Petroleum Products Retail Outlets Owners Association of Nigeria, the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Nigerian Association of Chambers of Commerce (NACCIMA).

The NLC said, “The frequent fuel price increase will no longer be accepted. We will not allow Nigerians fall victim of government ineptitude and negligence to make the country self-sufficient in terms of refining petroleum products at home.”

On its part, the PDP has described the price hike as “callous, cruel and punishing” and demanded an immediate reversal to avert a national crisis.

The All Industrial Global sees the incessant increase as a confirmation that deregulation means just price increase.

“This is unacceptable! Under a pandemic, we should put money in the pockets of citizens to revive collapsed livelihoods and preserve lives.” In its reaction, NECA said it has always urged Federal Government to adopt deregulation policy in the oil and gas downstream sector.

The MOMAN in its statement insists that monthly price variation of fuel was no longer sustainable. It urged PPRA to adopt quarterly price mechanism which would save the market the hassles of price volatility. The statements by IPMAN and NACCIMA also followed along the same line that the hike “…serves only to increase the severity and duration of the looming economic recession.”

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