“The mining and quarrying sector contributed N5.37 billion to GDP in 2021”
The mining and quarrying sector recorded a total contribution of N5.37 billion to gross domestic product in 2021, according to the National Bureau of Statistics.
This was according to data obtained from the gross domestic product for the year under review.
The N5.37tn, however, was down from the N5.82tn recorded in 2020.
Within this sector, there are four subsectors, which include crude oil and natural gas, coal mining, metal ores, and quarrying and other minerals. The crude oil and natural gas sub-sector has a higher contribution of 5.24 tn.
The coal mining sub-sector contributed N7.71 billion, the metal ores sub-sector N8.33 billion, while quarrying and other minerals contributed N111.09 billion. naira.
Regarding the sector, the report states: “In real terms, the mining and quarrying sector increased by -6.16% (year-on-year) in the fourth quarter of 2021. Compared to the same quarter of 2020 and the third quarter of 2021, it was 12.28 percentage points higher and 4.40 percentage points higher respectively.
“Quarterly on a quarterly basis, the growth rate recorded was -21.33%, while the annual growth stood at -7.79% in 2021. The contribution of extractive industries to real GDP during the quarter under The review stood at 5.50%, below the rate of 6.09% recorded in the corresponding quarter of 2020 and lower than the 7.66% recorded in the third quarter of 2021 respectively.
The Department of Mines and Steel has the legislative mandate to regulate mining, but many state and local governments have embarked on imposing their own rules and regulations, including issuing registrations, permits, community development agreements and a memorandum of understanding on miners. .
Under the authority of the ministry, there is the Bureau du cadastre minier, which is responsible for the management and administration of mining titles.
The agency also maintains a chronological record of all applications for mining titles in a priority register, which ensures that the agency processes all applications on a first-come, first-served basis and also applies the principle of “use it or lose it” to mining titles.
In July last year, MCO Chief Executive Simon Nkom said the office had generated more than N10.73 billion since 2016 from licenses granted to mining companies.
He had said that revenue of 1.15 billion naira was generated in 2016, 2.13 billion naira in 2017, 1.55 billion naira in 2018, 2.58 billion naira in 2019, 2.30 billion naira in naira in 2020 and 2.02 billion naira from January to May 2021.
Mismanagement, double taxation and the activities of illegal miners have also been said to plague the country’s mining sector.
According to him, some state governments, in order to shore up their revenue, impose illegal fees, taxes and levies on foreign and local licensed mining companies and operators.
Regarding the mining titles that can be obtained in the country, he mentioned reconnaissance license, exploration license, small-scale mining lease, mining lease, quarry lease and water use license. .
On the MCO website, there are currently 6,376 active mining titles, which include 2,502 exploration permits, 2,097 quarry leases, 1,522 small-scale mining leases and 255 mining leases.
All rights reserved. This material and any other digital content on this website may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without the prior express written permission of PUNCH.
Contact: [email protected]