Nigeria wants to promote the creation of 250,000 jobs. The Nigerian state has recorded an aggressive return. The new strategy within the Ministry of Mines and Steel Development since 2019 reinforces its development objective.
However, the country experienced a black year following COVID-19 in economic terms. But the country’s strong mining sector has registered a higher value over a three-year period. The royalty in the federal coffers was 7.69 billion Naira over the period 2018 to 2020.
According to Ny Fenitra Maminiaina Solofonirina, economic analyst, in 2019, the amount of royalties generated is increased by 2.56 billion naira. The annual increase was 9% compared to 2018. The distribution of the total royalty paid during 2018 from the Nigerian region including the South West State of 749.96 Million (39.95%) and the North West State is 125.44 Million naira with 6.68%.
Uganda State is the leader in the South West Region in royalty revenue collected at 563 million naira with a rate of 75.09%. Mr. Franck Odoom, Director of the Mining Inspectorate of the Ministry of Mines and Steel Development in Abuja, attributed very satisfactory values to Ogun State.
« The abundance and the incredible active presence of construction companies », which, according to him, « explains the highest revenues generated by the state ». He added that « these royalties come from construction materials, especially from the cement industries that use limestone as the main material, which is abundant [in the state].
In 2019, the figures are the same as in the previous year. The South-East Zone is still at the top of the list of major generators of total revenue from Nigeria’s mining sector.
Uganda State realized approximately double the value in 2018. North West State generated 951.04 million Nairas, with 37.17% of the total royalties paid for the year. The Northeastern State generated N113.67 million (4.44%) due to the insurgency in the region.
© Photo Credits : Hakili Times