The Federal Government, through the Nigeria Extractive Industries Transparency Initiative (NEITI), has disclosed that Dangote Cement Plc and Dangote Industries Limited were the highest contributors of revenue for the Federal Government from the country’s Solid Minerals sector in 2019.
According to NEITI’s 2019 Audit Report signed by its Executive Secretary, Orji Ogbonaya Orji, released on Tuesday, the two companies under the Dangote Group, contributed about N778.28 million representing 31 per cent of the N79.96 billion, which the country earned from the solid minerals sector in 2019.
Specifically, while Dangote Cement Plc’s revenue contribution to the Federal Government stands at N635.52 million, Dangote Industries Limited’s revenue stands at N142.76 million, representing 25.40 per cent and 5.71 per cent of the total revenue received by the government during the period under review.
The report named the top five companies that contributed significantly to revenue from the solid mineral sector to include Dangote Cement Plc, Dangote Industries Limited, Lafarge Plc, Julius Berger, and Reynolds Construction.
According to the report, out of 702 companies that paid royalties to the government in 2019, only 74 companies met the materiality threshold of N3 million.
“These 74 companies accounted for 87.63 per cent of total royalties of N2.50 billion paid in 2019, with the top five companies (Dangote Cement Plc; Lafarge PLC; Dangote Industries; Julius Berger; and Reynolds Construction) paying more than 50 per cent of total royalties” the report stated.
An analysis of revenues flows from the sector also showed that the sum of N79.96 billion recorded in 2019 was the highest in the past five years.