Nigeria received N1.2trn from solid minerals in 16 years – NEITI

About N1.137 trillion (about $3.86 billion) in direct payments from solid minerals was made to various government levels in Nigeria between 2007 and 2023, a report by the Nigerian Extractive Industries Transparency Initiative (NEITI) has said.

The report released in Abuja by NEITI on Wednesday shows a substantial increase in government receipts from ₦7.59 billion in 2007 to ₦341.27 billion in 2022, a 44-fold rise, indicating solid sector growth.

Daily Trust reports that the 2023 Solid Minerals Audit Report, the 16th audit cycle, provides a comprehensive overview of the sector’s contributions from 2007 to 2023.

Presenting the Progress Report on its Extractive Industries Transparency Initiatives (EITI) Implementation in Nigeria in Abuja, the National Coordinator of EITI in Nigeria and Executive Secretary of NEITI, Dr. Orji Ogbonnaya 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.

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“The 2023 report underscores the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding ₦1 trillion,” 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).

Discrepancies initially amounted to ₦301.6 billion but were reconciled down to ₦100 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 ₦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.