Solid Minerals Sector Contributed N1.137trn To Govt. Receipts In 15yrs – NEITI Report
By Juliet Ukanwosu
The 2023 Solid Minerals Sector Audit Report, released by the Nigeria Extractive Industries Transparency Initiative (NEITI) in Abuja on Wednesday, has shown that the sector contributed ₦1.137 trillion (about $3.86 billion) in direct payments to various government levels from 2007 to 2023.
The report also showed a substantial increase in government receipts from ₦7.59 billion in 2007 to ₦341.27 billion in 2022, a 44-fold rise, indicating significant sector growth.
“The 2023 report underscores the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding ₦1 trillion,” Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji stated, emphasizing the potential for further growth as regulatory compliance and reporting continue to improve.
Conducted by indigenous firm Haruna Yahaya and Co., the Report 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 ₦345.41 billion, with a reconciled final revenue of ₦329.92 billion.
Company payments analysis indicated that total government revenue, including reconciled and unilaterally disclosed figures, reached ₦401.87 billion in 2023. Key revenue streams included VAT (₦128.32 billion), FIRS taxes (₦370.09 billion), Education Tax (38.64%), Company Income Tax (10.64%), and royalties (₦9.06 billion).
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 ₦117.29 billion.
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% in 2022, with incremental growth to 0.75% 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.
Presenting the Progress Report on its Extractive Industries Transparency Initiatives (EITI) Implementation in Nigeria, Dr. Orji, explained that apart from actively addressing the gaps in the EITI implementation identified during the 2023 Validation Exercise, NEITI has been working closely with the government, extractive companies, civil society, and the media to achieve meaningful impacts beyond the stated issues, demonstrating its commitment to meeting national and global obligations.
While restating that NEITI is committed to achieving an outstanding validation outcome by January 2026, he said, “Last January, a high-powered EITI Mission visited Nigeria to deliver the results of Nigeria’s 2023 Validation Exercise, assessing the country’s EITI implementation progress. The EITI Mission’s report awarded an overall high score of 72 points out of a possible 100, highlighting several areas of commendable performance as well as key areas requiring remedial actions.”
He outlined the primary areas needing corrective action, including the reconstitution of the National Stakeholders Working Group (NSWG), strengthening civil society participation in the EITI process, and deepening NEITI’s engagement with extractive companies. He expressed satisfaction that these issues have since been addressed under an approved corrective action plan.
Speaking on behalf of the NSWG Chair, Amb. Mathew Adoli, Alternate Chair of the NEITI NSWG, expressed optimism that with these corrective measures, the NEITI Secretariat is now stable, strengthened, and fully prepared to execute its 2024 work plan aligned with NEITI’s 5-year strategic plan.
Minister of Solid Minerals Development, Dele Alake, who was represented by the Director General of the Solid Minerals Development Fund, said that the Ministry will prioritize the report’s data to empower non-state actors and facilitate evidence-based engagement for government and company accountability.
Also speaking, the Auditor General of the Federation, Adolphus Aghughu, pledged enhanced collaboration with NEITI for transparent public finance management.
Extractive360 reports that the 2023 Solid Minerals Audit Report is the 16th audit cycle, providing a comprehensive overview of the sector.
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