As oil revenue falls, can Nigeria's solid minerals sector rise to the occasion?
There's no doubt that solid minerals offer a great potential in improving our revenue, but first, how did this sector contribute to the Economy in 2018 and what are the prevalent issues?
In 2018, Nigeria sold 46.68m tons of solid minerals and accrued a total revenue of N69.47b . The solid mineral sector contributed 0.18% to the total GDP in that same year
A total of 1,516 mineral licences were issued, and 46.68m tons were sold compared to the 35.33m sold in 2017. While Ogun State produced the highest volume, Dangote Cement Plc made a contribution of 46.38%, and limestone accounted for about 54.85% of the total volume produced.
There was a 382.84% increase in the Free on Board value of the solid minerals exported in 2018 from 2017. Overall, the solid mineral contributed only 0.18% to the total GDP
A total number of 9,873 people were employed in the sector in 2018 with 5,823 being indigenes of the mining location, 3,759 are Nigerians from other states while 291 are expatriates. This number represents just about 0.014% of Nigeria’s workforce
The export data include minerals that were not captured in the production data, and as such, there were no records of royalty payments on these minerals. At least 30 companies were in this category and this resulted in revenue loss of N45.3b for about 23.585mt
There’s also a record of about 30 other companies who actually paid royalties, but their names were not included in the mining register. This led to the inaccurate calculation of revenue accruable from those companies
This issue of lack of adequate data raises serious concerns regarding proper management of the sector and accurate information on revenue generated, for example, what are the key metrics used for calculating revenue.
There is a need to ensure that internal control mechanisms are strengthened around payments, and records must be properly kept and classified. Those who operate in the sector must be duly licensed and FIRS system needs to be functional and accurate to avoid errors
Hello Nigerians, our extensive analysis of the 2024 FG Budget is finally out!
Details?
The Budget is anchored on N28.78tn in total expenditure & N19.60tn in revenue, a Debt service of N8.27tn, Recurrent (Non-Debt) expenditure of N8.77tn, & Capital expenditure of N10tn.
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The fiscal deficit is currently N9.18tn. The projected deficit represents about 50% of the federal government’s expected revenue and 3.88% of the projected GDP.
#2024BudgetNG
A look at the sector allocations shows the highest share of the total budget going to Security and Defense (13.38%), followed by Education (8.21%), Infrastructure (6.63%)…
Our findings on Senator Ningi’s allegations of N3.7 trillion budget padding for 2024 budget shows that a breakdown of N25.4tn was provided for the budgets of the Ministries, Departments and Agencies…
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#AskQuestions
…while the comprehensive budget breakdown of GOEs, @nassnigeria, National Judicial Council, Public Complaints Commission, INEC, and TETFUND totaling N3.32tn was excluded from the budget that was passed and published.
This does not mean the country operates two separate budgets.
There’s only one final 2024 budget known to us.
However, the summary budget of the aforementioned agencies was passed by the National Assembly and included in the published approved budget.
🗣️ @BudgITng's State Fiscal Transparency League project reveals findings on Nigeria's procurement websites👇
- 7 states have functional e-procurement portals with accessible data
- 16 states have portals, but data isn't up to date.
- 13 states lack both portals & data.
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BudgIT, under its State Fiscal Transparency League project, has extensively assessed the procurement websites of Nigeria’s 36 states to evaluate the level of transparency and accessibility of procurement-related information to the public. #SFTLProject #AskQuestions
The assessments, categorized into three categories—Green, Yellow, & Red—are as follows: green indicates that a state’s e-procurement portal is operating and data is available;
Having reviewed the proposed 2024 Appropriation Bill breakdown, it’s unfortunate that the @officialABAT administration has continued with some harmful budget practices from previous regimes that have fostered corruption, underdevelopment, unemployment, and multidimensional poverty.
PRESS STATEMENT
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#Budget2024NG
In August 2023, we itemized ten plagues that the Tinubu administration should avoid in the 2024 budget and budget process to ensure value for money, curb expenditure inefficiency and waste, enforce accountability, and put Nigeria on the pathway of prosperity, economic growth, and development.
Unfortunately, having reviewed the proposed 2024 Appropriation Bill breakdown, we observed that the Bola Ahmed Tinubu administration has continued with some deleterious budget practices from previous regimes that have fostered corruption, underdevelopment, unemployment, and multidimensional poverty.
The Fiscal Options & Post-election Governance series was an interesting exploration of Nigeria's economic opportunities in the current post-election environment. From insightful discussions to eye-opening presentations; here are a few takeaways!
BudgIT’s Global Director, @seunonigbinde in his introductory remark emphasized that the fiscal business series will set the tone for issues & reforms on the cost of governance, macro economic fundamentals, social spending, & expenditures on health and education in Nigeria.
“Nigeria is a democratic country limited by the political terms of a 4 year cycle. BudgIT believes that Nigeria cannot find progress and opportunities if it does not reposition its thinking to a long-term process devoid of this political cycle.” - @seunonigbinde