By Milcah Tanimu
The Nigeria Extractive Industries Transparency Initiative (NEITI) has reported that the solid minerals sector contributed over N1 trillion to Nigeria’s gross domestic product (GDP) from 2007 to 2023.
During the presentation of the NEITI 2022-2023 Solid Minerals Report, titled *‘Unleashing the Potential of the Solid Mineral Sector: Assessing the Implementation of the Nigeria Mining Roadmap’*, Executive Secretary Orji Ogbonnaya Orji detailed the findings in Abuja on Wednesday.
Orji stated, “The 2023 solid minerals audit report, the 16th audit cycle, provides a comprehensive overview of the sector’s contributions over the years, with N1.137 trillion (approximately $3.86 billion) paid to various levels of government.”
The report indicates a significant increase in government revenue from the sector, rising from N7.59 billion in 2007 to N341.27 billion in 2022, marking a 44-fold increase and reflecting the sector’s growth.
“The 2023 report underscores the sector’s evolution into a crucial revenue contributor for Nigeria, with cumulative contributions now exceeding N1 trillion,” Orji emphasized, highlighting the potential for further growth as regulatory compliance and reporting improve.
Conducted by the indigenous firm Haruna Yahaya and Co., the report covers the solid minerals industry’s economic contributions, revenue streams, and exports, offering recommendations for necessary reforms.
The report noted that in 2022, the sector generated N345.41 billion, with reconciled final revenue at N329.92 billion. An analysis of company payments 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: N38.64 billion
– Company Income Tax: N10.64 billion
– Royalties: N9.06 billion
Orji pointed out that discrepancies initially amounting to N301.6 billion were reconciled to N100 million, showcasing NEITI’s commitment to transparency. Production and export data revealed that 95.07 million tonnes of minerals were produced in 2023, with an export volume of 4.32 million metric tonnes valued at N117.29 billion.
The report highlighted the top mineral-producing states, including Ogun, Kogi, and Rivers, with Ogun leading in production. Revenue contributions were primarily from Osun, Ogun, and Kogi states.
Additionally, the solid minerals sector’s GDP contribution was recorded at 0.83 percent in 2022, with incremental growth to 0.75 percent in 2023, indicating untapped potential. The report emphasized the policy measures and reforms needed to unlock the sector’s capacity for greater economic diversification.
George Akume, the Secretary to the Government of the Federation (SGF), reaffirmed the Federal Government’s commitment to implementing the principles and standards of the global Extractive Industries Transparency Initiative (EITI) across the oil, gas, and mining sectors, with renewed focus on the solid minerals industry.
Speaking as chair of the NEITI national stakeholders working group, Akume stated, “Nigeria, under President Ahmed Tinubu’s leadership, remains committed to these principles, focusing on strengthening regulatory compliance, promoting transparency in revenue flows, and addressing environmental and social impact concerns.”
He concluded, “This policy statement, embodied in NEITI’s 2022/23 Solid Minerals Industry Report, underscores our dedication to reforming the sector and maximizing 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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