NEITI: Over 1.64m Tonnes of Solid Minerals Exported Without Permit in 2020
A report by the Nigeria Extractive Industries Transparency Initiative (NEITI) has indicated that over 1.64 million tonnes of solid minerals were exported without the required government permits in 2020.
In the latest document released by the organisation, it noted that there was a discrepancy between the volume of the minerals recorded by the Minerals Inspectorate Department (MID) Nigeria Customs Service (NCS).
“Minerals export as per the records derived from the export permits issued by Minerals Inspectorate Department (MID) was 34. 634 million tonnes of minerals while the record of NCS showed 32.992 tonnes. There were minerals exported for which there were no evidence of export permit,” NEITI said.
It urged government to continue with deepening the ongoing reforms in the sector as well as oversee the full implementation of the roadmap to achieve the set goals.
“There should be periodic reconciliation of export permit issued by the ministry of solid minerals and actual export records of NCS. This will ensure that only minerals with valid permits are exported,” NEITI recommended.
Stressing that the target of government is to increases the contribution of the solid minerals sector to the Gross Domestic Product (GDP) to 5 per cent, NEITI called for investment in the generation of geological data, access to funding and engagement with the relevant stakeholders in order to sustain investment and revenue growth in the sector.
While there was significant compliance with the NEITI audit process, the initiative recommended that government should put in place strict sanctions against non responsive companies to deter future occurrence.
Furthermore, it called on the Mining Cadastre Office (MCO) to intensify effort and vigorously pursue the recovery of the outstanding liability into government coffers.
“MCO should invoke the relevant sections of the Nigerian Minerals and Mining Act 2007 and the regulations made pursuant thereto, and revoke mineral titles whose holders have defaulted in the payment of their annual service fee to the federal government of Nigeria.
“Similarly, after the revocation of such titles, the holders should be made to pay all outstanding liabilities prior to the revocation in accordance with the Act,” the report noted.
On recommendations, NEITI called on government and private sector business operators to collaborate on developing and implementing digital and electronic business transaction platforms or models that are efficient and require less human interface.
In addition, NEITI urged government to encourage the development and exploitation of the identified strategic minerals through the establishment of mineral corridors, clusters and partnering with competent investors and other stakeholders to explore and develop the mineral resources.
