The Nigeria Extractive Industries Transparency Initiative (NEITI) says the solid minerals sector contributed over N1 trillion to the nation’s gross domestic product (GDP) between 2007 and 2023.
Orji Ogbonnaya Orji, the executive secretary of NEITI, said this while presenting the NEITI 2022-2023 Solid Minerals Report, tagged, ‘Unleashing potential of the solid mineral sector: Assessing the implementation of the Nigeria mining road map’, in Abuja on Wednesday.
According to Orji, “The 2023 solid minerals audit report, the 16th audit cycle, provides a comprehensive overview of the sector’s contributions from 2007 to 2023, during which N1.137 trillion (about $3.86 billion) in direct payments was made to various government levels.”
The report shows a substantial increase in government receipts from N7.59 billion in 2007 to N341.27 billion in 2022, a 44-fold rise, indicating solid sector growth.
“The 2023 report underscores the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding N1 trillion,” Orji stated, emphasising the potential for further growth as regulatory compliance and reporting continue to improve.
He said the report conducted by indigenous firm; Haruna Yahaya and Co. covered the solid minerals industry’s economic contributions, revenue streams, and exports, providing recommendations for sector reforms.
“The report disclosed that in 2022, the sector generated N345.41 billion, with a reconciled final revenue of N329.92 billion.
Company payments analysis indicated that total government revenue, including reconciled and unilaterally disclosed figures, reached N401.87 billion in 2023.
“Key revenue streams included VAT (N128.32 billion), FIRS taxes (N370.09 billion), Education Tax (38.64%), Company Income Tax (10.64%), and royalties (N9.06 billion).”
He noted that discrepancies initially amounted to N301.6 billion but were reconciled down to N100 million, demonstrating NEITI’s transparency commitment. Production and export data showed 95.07 million tonnes of minerals produced in 2023, with a significant export volume of 4.32 million metric tonnes, valued at N117.29 billion.
He said the report highlighted top mineral-producing states, including Ogun, Kogi, and Rivers, with Ogun leading production. Revenue contributions were led by Osun, Ogun, and Kogi states.
“The report also identified the solid minerals sector’s GDP contribution at 0.83 percent in 2022, with incremental growth to 0.75 percent in 2023, underscoring untapped potential. It reiterated policy measures and reforms needed to unlock the sector’s capacity to contribute more significantly to Nigeria’s economic diversification.”
George Akume, the secretary to the government of the federation (SGF), in his remarks, said the Federal Government was committed to implementing the principles and standards of the global Extractive Industries Transparency Initiative (EITI) across the oil, gas, and mining sectors, with renewed priority attention on the solid minerals industry
The SGF, speaking in his capacity as chair of the NEITI national stakeholders working group, said “Nigeria, under the leadership of President Ahmed Tinubu, remains committed to implementing the principles and standards of the EITI across the oil, gas, and mining sectors, with renewed priority attention on the solid minerals industry.
“To attain this goal, the FGN is targeting important measures using the NEITI/EITI framework, including strengthening regulatory compliance and industry oversight, promoting transparency in revenue flows, contracts transparency, and addressing environmental and social impact concerns, facilitating economic diversification ion and job creation enhancing, stakeholder engagement and community participation.
He said the policy statement, embodied in NEITI’s 2022/23 Solid Minerals Industry Report, “underscores our commitment to reforming the sector and maximising its value for all Nigerians. As we unveil this report, we reaffirm our commitment to transparency, accountability, and sustainable development in Nigeria’s extractive industries.
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