An agency of the Federal Government, the Nigeria Extractive Industries Transparency Initiative (NEITI), has revealed that Dangote Industries Limited generates more mineral resource revenue for the government than the rest of the nation put together.
In its reports made available to journalists Wednesday, Dangote Cement was said to be responsible for 53 per cent of the government revenue, that is, N15.9 billion of the total N33.86 billion accrued that year to the Federal Government.
The report revealed that 93 per cent of the total government revenues from solid minerals sector was from five companies: Dangote, WAPCO, Ashaka Cement, Unicem, CCNN and others.
The report states that: “53 per cent of the country’s revenue from the solid minerals sector was paid by Dangote Cement Plc to the Federal Government.”
NEITI says Nigeria has about 52 solid mineral resource across all states of the federation, with every state possessing at least two mineral resources. But of all 52, limestone was exploited more in 2013, than 51 others put together. Limestone, which is used for making cement, was responsible for 52 percent of solid mineral productions. Granite, Laterite, and sand were responsible for 27.8, 11.3 and 5.8 percent respectively. Forty-eight other minerals were responsible for only 3 percent of the country’s solid mineral productions.
Meanwhile, Senate has Tuesday said the country lost N447.42 billion to questionable import duty waivers, concessions and grants by different Ministries, Departments and Agencies (MDAs) of the federal government from 2011 to 2015.
The disclosure was contained in a report of the Senate committee which probed into import duty waivers, concessions and grants on agricultural imported items like rice and sugar as well as automobiles during the period under review.
The report submitted by the Chairman of the committee, Senator Adamu Aliero, specifically named Dangote Group, Coscharis, Bua Group, Milan Group among businesses that benefitted from the questionable waivers.
Aliero listed the affected companies to include Dangote Limited (N1.031billion); Kersuk Farms (N1.927billion); Bua Group (N3.704billion); Elephant Group (N1.501billion); Milan Group (N1.855billion) and Golden Penny (N284, 602, 399.20k).
According to the breakdown submitted by the committee, Nigeria lost N78,489,941,114.74 in 2011 through waivers, concessions and grants to different private companies, N128,538,453,758.99. in 2013 and N46,056,265,355.78 in 2013 while 2014 loss was put at N87,654,744,360.22.
According to Senator Aliero, former president Goodluck Jonathan-led federal government approved N106,711,892,098.14 as waivers, concessions and grants to private companies in 2015 alone.
Aliero also lamented criminality in that waiver system saying it was responsible for “large scale revenue leakages that robbed government of huge sums of money that would have been used for provision of infrastructural development and social services”.
Specifically, he named the Budget office, the Federal Ministry of Finance, Nigeria Customs Service, Federal Ministry of Industries, Trade and Investment, Nigeria Promotion Council, Federal Ministry of Agriculture and Rural Development and Federal Inland Revenue Service (FIRS) as agencies responsible for the loopholes.
“Customs duty waivers and concessions have been used by the Budget Office of the Federation to entrench a very destructive patronage system to our economy, whereby very few operators in the economy were singled out for favours resulting to unfair competition in the system” he noted.
It would be recalled that Dangote Cement Plc has recently expanded its frontiers to Asia, by constructing a 3 million metric tons per annum (mmtpa), Cement Plant in Nepal, as part of its new investment of $4.34 billion into 10 African countries.
Aliko Dangote, Chairman of Dangote Cement, who revealed this recently assured Nigerians that, the country will no longer be used as a dumping ground, as the company, now has capacity to export more than 10 million metric tons of cement outside the country.
Currently in 15 African countries, excluding Kenya, Niger and Mali, which are new projects. The company’s current total capacity stands at 48mmtpa, out of which Nigeria alone has the largest chunk of 29.3mmtpa.
Chatting with newsmen recently, Aliko said: “We are not only building cement plants in Africa, we have gone far away to NEPAL to build a 3 million metric tons Cement Plant capacity and by the time all these our new projects are completed in the next two years, Dangote Cement will have more than 70 million capacity but we are not going to stop there, hopefully, by 2020, our targets is getting to somewhere around 100 million tons capacity. I can assure you categorically that Africa will not lack cement now and even in the future…Africa will be self -sufficient rather than be a dumping ground for other manufacturers of cement.”