Nigeria raked in N1.37 trillion revenue from the solid mineral sector last year, according to the Nigerian Extractive Industries Transparency Initiative (NEITI) report.
Executive Secretary at NEITI, Orji Ogbonnaya Orji, disclosed this in a statement issued on the presentation of the releases of 2022-2023 Solid Minerals Sector Report in Abuja.
He said 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 ₦1.137 trillion (about $3.86 billion) in direct payments was made to various government levels.
Orji said the report 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.
“The 2023 report underscores the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding ₦1 trillion,” Orji said, 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 Value Added Tax (VAT) (₦128.32 billion), Federal Inland Revenue Services (FIRS) taxes (₦370.09 billion), Education Tax (38.64per cent), Company Income Tax (10.64per cent), 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 tons 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 0.83per cent in 2022, with incremental growth to 0.75per cent 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.
According to Orji, NEITI is committed to achieving an outstanding validation outcome by January 2026, the Secretariat of the transparency-promoting agency has said.
Presenting the Progress Report on its Extractive Industries Transparency Initiatives (EITI) Implementation in Nigeria in Abuja , Orji who is also the National Coordinator of EITI in Nigeria and Executive Secretary of NEITI, 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.
Orji recalled that 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.
The NEITI Executive Secretary outlined the primary areas needing corrective action, including the reconstitution of the National Stakeholders Working Group (NSWG), dissolved with other federal boards, strengthening civil society participation in the EITI process through open, transparent representation, and deepening NEITI’s engagement with extractive companies. Dr. Orji expressed satisfaction that these issues have since been addressed under an approved corrective action plan, reaffirming Nigeria’s dedication to the EITI principles.
Speaking on behalf of the NSWG Chair, Amb Mathew Adoli 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, at the public presentation noted that the Ministry will prioritize the report’s data to empower non-state actors and facilitate evidence-based engagement for government and company accountability.
Represented by the Director General of the Solid Minerals Development Fund, he emphasized closer partnership with NEITI on ongoing reforms.
The Auditor General pledged enhanced collaboration with NEITI for transparent public finance management, while Jonathan Gaza Gbefwi of the Solid Minerals Committee in the House of Representatives praised NEITI’s reports as critical legislative tools.
Apart from reconstituting the NEITI Board, Dr. Orji shared progress in working with the NEITI Companies Forum and key government entities, reinforcing NEITI’s collaboration with companies and civil society within the extractive industries. He noted that civil society participation is now better organized, with leadership elected transparently by the constituency.
On its Industry Audit Reports, Dr. Orji announced that the public presentation of the 2022/2023 Solid Minerals Industry Report demonstrates NEITI’s reporting is current and ready for stakeholder engagement.
At the NEITI House Dialogue’s second edition, he highlighted the establishment of the NEITI Data Centre, a centralized platform for extractive sector data, analysis, and training, which supports compliance with EITI’s Open Data policy and NEITI’s Systematic Disclosure Program.
