The Nigerian Extractive Industries Transparency Initiative (NEITI) has released a comprehensive report indicating that the extractive and mining sector contributed a remarkable N1.14 trillion to the federation account from 2019 to 2023. The report highlights the impact this revenue has had on the nation’s economy, emphasizing its distribution among the federal, state, and local government levels. As a crucial player in Nigeria’s gross domestic product (GDP), the mining sector’s contributions have grown significantly over the years. However, it also reveals a concerning trend: there are 1,619 companies that owe a total of N680.3 million in unpaid fees and royalties, underscoring the need for improvements in revenue collection and compliance with regulations.
The 2022/2023 Solid Minerals Industry report from NEITI, themed “Unleashing potentials of the solid mineral sector: Assessing the implementation of the Nigeria Mining Road Map,” presents valuable insights that have led to necessary reforms in the sector. Dr. Ogbonnaya Orji, NEITI’s Executive Secretary, noted that the solid mineral industry has considerable potential for economic contribution. He emphasized the urgency of addressing discrepancies between government revenues and corporate payments. Enhancing collaboration between NEITI, corporate entities, and civil society is essential for fostering compliance and transparency in the sector, which has grown into a vital revenue source for Nigeria.
The report reflects a steady increase in revenue to the federation account, with the total remittances rising from N79.96 billion in 2019 to an impressive N401.87 billion in 2023, marking a growth of 261% over the five-year period. This upward trend illustrates the mining sector’s evolution and its increasing contribution to Nigeria’s fiscal health. Additionally, Ogun, Kogi, and Rivers states emerged as leaders in mineral production, highlighting the geographical distribution of resources and the need for strategic exploitation. The report also mentions subnational transfers from the solid minerals revenue account and a significant reduction in discrepancies between reported revenues, showcasing NEITI’s commitment to transparency.
Production and export activities in the mining sector are also on the rise, with 95.07 million tonnes of minerals produced and 4.32 million metric tonnes exported in 2023, valued at N117.29 billion. Dr. Dele Alake, the Minister of Solid Minerals Development, emphasized the government’s commitment to transforming Nigeria’s mineral resources into sustainable revenue streams that contribute to national development. In light of the global economic shifts and the urgent need for diversification beyond oil and gas, the Ministry is pursuing strategic policy initiatives aimed at attracting investments and improving the business environment for the solid minerals sector.
Policy reforms, including the implementation of the National Mineral Resources Development Policy, are designed to ensure sustainable mining practices, environmental protection, and efficient resource utilization. These initiatives are expected to create momentum for both domestic and foreign investments in the mining sector, laying the groundwork for accelerated growth. The government’s strategic efforts highlight the importance of establishing a stable regulatory framework that nurtures investor confidence and promotes economic expansion in the mining industry.
Moreover, the National President of the Miners Association of Nigeria, Dele Ayanleke, expressed commendation for NEITI’s commitment to transparency in the extractive industries. He noted the potential of the solid minerals sector to create substantial job opportunities and foster the development of cottage industries, emphasizing the need for Nigeria to focus on the strategic exploitation of its mineral resources. However, he cautioned that significant challenges, including insecurity and regulatory inefficiencies, continue to hinder the sector’s growth. Addressing these challenges must be treated as a national priority to ensure that the solid minerals sector can fulfill its promise to drive economic development and improve livelihoods across the country.
