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Published On: Mon, Jul 21st, 2014

Nigeria generates N5.2bn in mining royalties, records geometric growth

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The Federal Government generated N5.2 billion between 2009 and 2013 from royalties in mining, Dauda Awojobi, Acting Director of Mines Inspectorate, Federal Ministry of Mines and Steel Development, has said.

Awojobi made the disclosure in Abuja, Sunday, during an interview with the News Agency of Nigeria (NAN).

He said that N736. 92 million was generated in 2009; N889, 46 million was generated in 2010, while N970. 78 million was generated in 2011.

He added that N1.12 billion was generated in 2012, while N1. 45 billion was generated in 2013, all of which he describes as significant “as the increment is in geometrical progression.”  Awojobi said the revenue accrued from more than 40 minerals that were mined across the country with 153.9 million tonnes of minerals mined in five years.

“Generally, we have a royalty template whereby royalties are calculated based on three per cent to five per cent of the value of the minerals.

“It is as a result of this increase in production that we are able to make significant progress through royalties generated between 2009 and 2013,’’ he said.

The acting director listed the minerals mined during the period under review to include: gold, coal, iron ore, clay, limestone, lead/zinc, kaolin, gypsum, baryte, columbite, copper, garnet, manganese, phosphate, talc and tantalite.

Others included: aquamarine, basalt, coltan, dolorite, domomite, feldspar, granite, laterite, marble, shale, sapphire, talc, tin ore (cassiterite), topaz, quartz, wolframite, tourmaline, zircon, silica and sand, among others.

Awojobi said the ministry had a databank on the minimum work programme approved for each mineral title with operators expected to state the timeline of the activities to be carried within a particular period.  He said that the minimum work programme would not only be used to monitor the activities of the operators but would also be used to monitor their progress.

These permits for mining minerals issued by the ministry, were either for export, analysis or for commercial purposes.

The ministry is noted to be planning to establish a databank on the statistics of accident recorded from mineral exploration.

According to the director, the databank will enable the ministry to monitor accidents in particular mining titles, the causality figures and the number of injured persons.

“We will be able to know the magnitude of the accidents and the causes. We want to be proactive in this area because the mining environment ought to be safe and healthy,’’ he said.

Meanwhile, the ministry is collaborating with the National Bureau of Statistics to ascertain the contribution of the mining sector to the country’s Gross Domestic Product.

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